marxism/resistance mp3's, part II
middle east through a marxist mirror, gilbert achcar (2003): very interesting talk, though makes arguments that can only be fully developed in the book of the same name. the underlying thread is that Marxism is going to be tested when applied to a region like the middle east (yet, of course, gilbert is also suggesting that it's important to make that "extra" effort--i would argue that, in truth, marxism always needs to be re-applied, rather than mechanically imputed). the issues he raises: (1) combined and uneven development--trotsky's methodology is critical, as you see the co-existence of the very modern with the very backward (and, indeed, the very point is that you can't make sense of the assemblage of structures without this framework to orient your analysis). but, and this is a point that is undoubtedly better developed in the book, the actually existing conditions in the middle east are very different from tsarist russia. whereas in the latter trotsky read the urgency of permanent revolution into the conjuncture of a weak bourgeoisie and urban petty bourgeoisie counterposed to a concentrated (if small) working-class, in the middle east, achcar's argument is that the urban petty bourgeoisie is much, much stronger (and that the working-class less so). it is the urban petty bourgeoisie that led the national democratic revolution (here he discusses them as an example of bonapartism, which again could not be fully developed in this talk--what he mentions is that, in the form of Nasser, they even went as far as expropriation of the national bourgeoisise--state capitalism), before it collapsed at the end of the 60's. what we are seeing now is what Marx argued--most of the urban petty bourgeoisie will not play a progressive role, but will want to turn back the clock of the history that is crushing them (hence islamic fundamentalism--and this is certainly a major part of the story, as many others have written). (2) achcar also argues that classical marxism needs to re-calibrated if we're to understand rentier states run by individuals or families--the heavy dependence on oil renders them, as those who control the oil rent, autonomous from the prevailing balance of class forces. this, achcar continues, means that the individual psychology of the leaders can play an important role in the policy that the state enacts--in other words, the paramount importance of oil enables erratic behavior (behavior that is not rational from the perspective of bourgeois economic development--i.e., Gaddafi. the state doesn't have to "deliver" to its bourgeoisie). (3) he makes some auxiliary observations about Islam, arguing that it has calcified into something less moldable than Christianity (he makes a strange claim about how christianity was born as a religion of the oppressed, which makes it amenable to theologies of liberation, whereas Islam and Judiasm do not have that character--the trouble is that this seems to neglect the very quick co-option of Christianity (and Islam, of course) as a ruling ideology (i mean that both (a) the imprint of the early years, in other words, would fade; and (b) thus, if christianity can make room for theologies of liberation, so can islam, surely (what about ali shariati?).
emiliano zapata, mike gonzalez (1993): more of an excellent history of the mexican revolution than a summary of zapata's life--gonzalez' narrative centers on the "lost possibility" of the winter of 1914, when zapata and villa found themselves in possession of mexico city for almost two months. after the defeat of general huerta (who had united the forces of reaction to topple madero)--a defeat which owed principally to the stregnth of the peasant armies, gonzalez argues--there was an opening for villa and zapata to cease power; the bourgeoisie was weak, disorganized, and plagued by in-fighting. but--and this is the point that gonzalez stresses--they failed to make common cause with the working-class (and two points are key, which make this "lost possibility" all the more lamentable: (1) the urban working-class existed, and was militant, as evidenced by a strike in 1908 and general activism; (2) the peasantry themselves was comprised of a significant number who worked for a wage, thereby offering a more potent basis for this possible alliance). the bourgeoisie, under the leadership of carranza and others, united to push zapata and villa back to the south and north respectively--they pursued, then, to besiege them for the next few years. these campaigns were a priority for the government, and demonstrated its commitment to a decisively bourgeois economic and political framework--as they encroached upon zapata's domain, they picked off the land he had reclaimed for the peasantry in order to hand it back to the landed elites that had fled the fighting. of course, it goes without saying that whatever was relatviely progressive in the constitution that was eventually consolidated in 1917--owed everything to the activism of zapata and villa.
john rees, the politics and economics of modern imperialism (2007): not unlike david harvey's "the new imperialism," john enumerates a dialectical schema for thinking about imperialism in capitalism. he argues that there are two "threads" to its DNA--two distinct logics: (1) an economic logic--capitalism invariably involves competition amongst different economic units for resources, labor and markets--conflicts which can hardly be limited by geographic boundaries; (2) a political logic--insofar as the modern era is defined by the existence of the nation-state, we contend also with a territorial logic of power, in which administrators are driven by geo-strategic compulsions to exercise control over regions beyond the borders of their own nation-states. while rees contends that these two dynamics have been in operation since the birth of modernity, imperialism has nonetheless developed in the hundreds of years since modernity was born (in other words, victorian imperialism is distinct from today's imperialism--it would be useful to enumerate how, which this talk doesn't do). the modern character of today's imperialism rests on two turning points, the first economic and the second political: (1) 1979, which represents the birth of neoliberal capitalism--the context of course is the petering out of the tremendous growth of the "golden age," in which capitalism both needed and was able to afford the welfare state. to revive profitability, capital sought the famous "three fixes"--neoliberalism, globalization, and financializaiton (he doesn't go into this in much detail, but this argument is there); (2) 1989, which represents the ascent of the neo-conservative vision in the united states--the nutters that advocate imperial expansion. he ends with the critical observation that, while the united states' military might is still unparalleled, its economic power has faded dramatically since the zenith of WWII--where once the dollar's stregnth was unquestionable and america's manufacturing base very impressive, america today is a de-industrializing debtor nation which depends on the oil states and e. asia to hold its dollars (in a sense we are seeing the interdependence and independence of the economic and political in this very fact--capital is fleeing the US, even as the nation-state desperately needs it to stay). the uneasy alliance rumsfeld brokered between the neo-cons and the fiscal republicans led the US into an iraq "invasion-lite" (half the number troops they used in the first gulf war)--but it was, as a result, rees argues, trapped in a unplanned, underfunded invasion of a population deeply hostile to its presence. the iraq invasion, of course, has worsened the fiscal deficit of the US considerably, making its economic position only more insecure (much like vietnam hit the american state in the early 70s). reed concludes by arguing that we are heading towards the definitive end to the american empire--what awaits us, though, we know not.
collected snippets of immediate importance...
Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts
Thursday, July 16, 2009
Sunday, March 1, 2009
from "the darker nations: a people's history of the third world" by vijay prashad (part III)
(154): The island of Bali lost about 8 percent of its population, or a hundred thousand people, in the assault on the PKI in 1965-1966.... The actual massacre came at the hands of the army and the activists of the right-wing, mainly theocratic, political parties. They had lists of names of activists and organizers of the PKI and its affiliated organizations. They used these lists to gather the victims for execution. Although the US and Australian governments neither instigated nor conducted the massacre, they encouraged the purge, fattened the lists of Communists for the army, funded the paracommandos, and supported the media effort to blame the entire genocide on the Communists.
(156-158): Moscow and Beijing remained mute. Since the 1920s, the USSR had an ambiguous relationship with Communist parties in the darker nations. On the one hand, the USSR had been the one state that gave enormous ideological, diplomatic, and material support to many independence struggles... From the early 1920s to 1935, [the Comintern] urged Communists in the darker nations to keep some distance between their activity and that of the nationalist groups in their regions... In China, though, the Comintern pushed the Communists into an alliance with the nationalist Kuomintang that ended in the disastrous Kuomintang 1928 massacre of the Communists in Shanghai... At the 1935 Seventh Comintern Congress, the Soviet Communists reacted to the development of fascism within Europe by telling Communist parties to work in a "popular front" with all patriotic social forces... While the strategy of the Comintern developed out of the German Communist Party's failure to stop the Nazi rise to power in 1933, that experience now came to dominate the work of Communists in far different settings... By the advent of the Cold War in the late 1940s, the class collaborationist line had substantially weakened the Communist parties in the Third World, and they became easy prey for attack by the CIA and the nationalist regimes... The concepts of the national democratic state and new democracy allowed Moscow and Beijing to accept noncommunist regimes and national liberation movements as sufficient for the nonindustrial world.... Nasser's Egypt, Qasim's Iraq, Boumedienne's Algeria, Indira Gandhi's India, New Win's Burma, Sekou Toure's Guinea, Ayub Khan's Pakistan, and Mobido Keita's Mali became part of the USSR's and the People's Republic of China's most favored states, even though most of these leaders suppressed their local Communist parties.
(158-159): By the early 1960s, the three largest Communist parties (outside a Communist state) in Asia, Africa, and the Arab lands were the PKI of Indonesia, Sudan's al-Hizb al-Shuyu'i al-Sudani (SCP), and the Iraqi Communist Party (ICP), respectively. These parties commanded the respect of a large section of their societies... Within a decade, these three parties would be devastated when the national bourgeoisie (with the assistance of the United States as well as a blind eye from Moscow and Beijing) would call the military out of the barracks to exterminate them. If the USSR and the People's Republic of China had taken a strong stand in any one of these instances, they might have given courage to Communists elsewhere... Instead, the silence scared Communists into alliances with political forces that wanted to use and then destroy them. The Communists were useful. Sukarno needed the PKI for its program and cadre. When Brigadier Qasim overthrew the Iraqi monarchy (1958) and Colonel Jaafar al-Nimeiri rejected a corrupt military junta in Sudan (1969), both leaned on the strong Communist parties... A military coup has little institutional basis for legitimacy...
(159): [BAATH PARTY, SADDAM, THE SOVIETS AND THE ICP] When the ICP took advantage of the opening to revive its banned organizations... [it] grew to more than twenty-five thousand cadre members with an additional mass membership of a million (about a fifth of the total population of Iraq). The growth of the ICP and its social power terrfied the dictatorship of Qasim. Shortly after Qasim came to power, the founder of the Baath, Michel 'Aflaq, visited Baghdad from Damascus to promote his party over the ICP. "We represent the Arab spirit against materialist Communism"... The Baath had only three hundred members in Iraq, and would grow to only three thousand in the early 1960s. In May 1959, Husain ar-Radi, the ICP's first secretary, entered a politburo meeting and argued that the time had come for the party to make a move for power. He was outvoted. The Soviets had sent an envoy with a message not to provoke Qasim. The Baath took the initiative; the US backed it. The ICP defended the nationalist military regime when the Baath attempted a coup in October 1959... The Baath's way had been prepared, and it eventually captured the state in 1963... In 1968 Hussein came to power. The USSR became a major ally of Hussein, who cultivated a split in the battered ICP... [A] ppro-Soviet faction of the ICP joined hands with him. The anti-Baath group...felt the wrath of the Baath's militia... The ICP that remained within the government enabled Iraq's 1972 friendship treaty with the USSR, but as Hussein increased his hold on the country he began a campaign against the ICP itself. In 1978, Hussein had the "loyal" party members arrested, executed many cadre... Hussein's campaign against the ICP led to his enhanced stock among Washinton's policymakers, whose own alliance with him began in 1983. The remainder of the ICP's cadre either fled overseas or else remained within Iraq to continue the struggle, notably in the Kurdish regions (long a bastion of the Left).
(160-161): [SUDAN, NIMEIRI AND THE COMMUNISTS] In Sudan, Nimeiri came to power on a Nasserite agenda, and he, like Qasim, could not rule without the SCP. After the coup he banned all political parites, but allowed the SCP to continue its activities. Founded in 1944, the SCP was the onl political party with national standing because, unlike the sectarian and racialist parties, it recruited equally in the north and south, among Christians as well as Muslims. Nimeiri needed the SCP. In the typical formula, Nimeiri first went after his right flank. In 1970, he began an assault on the reactionary Umma Party... When that party had been substantially pacified, Nimeiri turned his attention to the SCP. The brutal repression of the SCP drove the Communists to attempt a coup of their own along with sympathetic army officers... When news of the events in Sudan reached the Soviet leadership, it tried to negotiate with the Nimeiri government, as well as with the Egyptians and the Libyans, for asylum to the SCP's leaders. Once rebuffed, it did not pursue the matter. It is not that Moscow felt nothing for its comrades in the tropics, but that the fortunes of the Communist parties in the Third World came second to the strategy mapped out by the USSR and the People's Republic of China. When the Nimeiri regime executed the SCP leaders despite the entreaty from the USSR, Moscow rewarded the dictator with economic and political treaties as well as a special honored place as a delegate to the Communist Party of the USSR's twenty-fourth Congress in late 1971.
(162): As Sukarno fell, no significant word of protest came from New Delhi, Belgrade, Rangoon, Cairo or Accra... Indonesia's Sukarno had played a crucial role in the creation of the political platform of the Third World, and Bandung had been its omphalos. Yet there was silence. The personal or political demise of the five major leaders of the progressive tendency in Bandung reveals much about the collapse of solidarity: Nehru died in 1964, Both U Nu and Nkrumah had been recently deposed by military coups, Nasser's role had been weakened by the collapse of his United Arab Republic, and Tito had begun a genial rapproachement with the USSR.
(163): At the 1977 NAM meeting in New Delhi... neither Iraq, Sudan, nor Indonesia were laughed out of the room--their pogroms against the Communists in each case became the sacrosanct "internal affairs" of each country. The major Third World powers accepted Indonesia, Sudan, Iraq, and others simply because they signed on to the basic principles of non-alignment, and because they shared a similar international economic analysis... The destruction of the left had an enormous impact on the Third World. The most conservative, even reactionary social classes attained domiannce over the political platform created in Bandung. As an adjunct to the military regimes, the political forces that emerged rejected the ecumenical anticolonial nationalism of the Left and the liberals for a cruel cultural nationalism that emphasized racialism, religion, and hierarchy.
(166): In 1920, the Karakhan Manifesto from the USSR repudiated the treaties between the Czarist regime and the Manchu Empire, with the statement that the Soviet Republic "renounces all the annexations of Chinese territory..." In the late 1950s, the USSR would rescind this statement and insist on territory that it had abrogated.
(167-168): Nehru's Congress Party did not expend foreign exchange on the import of foreign arms. The armed forces had to do with British remainders and whatever could be produced domestically. From 1951-1962, the Indian treasury spent less on arms than either the British government before it or the Indian governments that would follow the Sino-Indian war (1962). Despite the war with Pakistan in 1947-48, the Indian government reduced its military expenses to 2 percent of its total budget... After the war, the Indian government would not stint on its military to become the world's largest importer of weapons by the 1990s.
(168): [WHY 1962 WAR]: Another way to look at the Sino-Indian border war is to see it as a commonplace occurrence in the new postcolonial states that had, as far as the borders went, begun to adopt a more "European" notion of nationalism than their own previous anticolonial form... Indeed, the Himalays that run along the borders between today's states of Burma, Nepal, India, China, Pakistan, and Afghanistan are home to people at high altitudes whose lives rely on transit across the mountain passes to the plains for trade or religious pilgrimages. The boundary is not in the interest of these people...
(170): Colonial powers based their borders on what they were able to conquer, and guarded these boundaries in terms of security rather than any other principle. The cartography of the Himalayas by the British had little to do with the needs and desires of the people who lived in the hills; it had everything to do with the creation of buffer states to protect their Indian empire from the threats by the Czarist Russians and the Manchu Chinese. In 1893, the British created the Durand line, which ran right through the homelands of the Pashtu speakers so as to maintain Afghanistan as a border territory between Russia and India, just as in 1914, the British fashioned the McMahon line to divide their Indian domains from those of the Chinese.
(173): [In the 3rd World, not military Keynesianism, but militarization by gutting of welfare state] WB President Robert McNamara's study of military expenditures in the darker nations found that states had quintupled that one line item between 1960 and 1988; military expenditure increased at twice the rate of per capita income.
(174): China's foreign policy wound its way from Bandung to a rapproachment with the United States and its impossible alliances with dictatorial regimes. As China began its new relationship with the United States, the Chinese government praised the Greek military junta (1972), took the side of Pakistan against the liberation of Bangladesh (1971), welcomed Niemeiri to Beijing after the dictartorship's massacre of its Communists (1971), sent emergency aid to the Sri Lankan government to defeat the left-wing Lanka Samaja Party's insurrection, and quickly recognized Pinochet's coup in Chile (it expelled the Chilean ambassador to China when he refused to support Pinochet). The Sino-Indian war compromised the credibility of India and China.
(178): In 1850, fossil fuels supplied only 6 percent of the world's energy needs, while humans and animals provided the rest. A century later, human and animal power had declined to 6 percent, while fossil fuel use accounted for the remainder.
(178): By 1950, the main energy corporations organized themsleves into seven conglomerates known as the Seven Sisters: Exxon, Shell, BP, Gulf, Texaco, Mobil, and Socal (or Chevron). Even though oil is a lucrative product, in its crude state it is nothing more than a raw material. To remove oil from the ground requires an immense capital outlay, both for exploration and extraction. This initial capital outlay is the carrot and stick used by the Seven Sisters. They came to the oil lands in the early years and staked out "concessions" for themselves... These seven firms, in 1950, controlled 85 percent of the crude oil production in the world outside Canada, China, the USSR, and the United States...
(178): The regimes that ruled over the oil lands could have used the rent paid by the oil companies to increase the social wage--to expand public education, health, transport, and other such important avenues for the overall advancement of the people. Instead, the oil rent went toward the expansion of luxury consumption for the bureaucratic-managerial or monarchal elite--the oligarchy in Venezuela or the Ibn Saud clan in Saudi Arabia--and to oil the military machine (the oil war of Bolivia-Paraguay, 1932-1935, was a preview of the 1967-1970 Nigerian civil war)...
(178-179): In 1957 alone the Seven Sisters made $828 million in Venezuela, whose regime allowed them to remit all their profits without restrictions... The United States supported the junta that came to power in the 1940s, whose goal was to maintain good relations with the oil cartel rather than pusrue social development policies... The oil wealth was not, therefore, reinvested for the overall development of the country. The junta reversed the land reforms of a decade previously, sold the land to private speculators, and moved Venezuela to become a net importer of food grains... In 1958 the new relatively progressive government led by Accion Democratica (AD) expressed an interest in recouping a larger share of the profits... Venezuela had been able to increase its share of the world oil market for serendipitous reasons. Mexcio used to be a major provider of the world's oil (25%). After the Mexican Revolution (1911), the new regime attempted to get a better handle on its oil profits... In 1934, after two decades of tussle, the general who had once guarded the oil region, Lazaro Cardenas, became the president... In 1938, Cardenas nationalized the oil industry... The Seven Sisters moved their focus from Mexico to Venezuela...
(180-181): In the late 1940s, Raul Prebisch complained about the low prices earned by the raw material producers because private cartels controlled international prices. Whether the crop is cocoa, sugar, rubber, or oil, the structure of the commodity cartel did not differ much... The declining price of raw materials over time meant that the Third World would never be able to earn enough from the sale of raw materials to effect both meaningful social development and industrial growth. Many of the formerly colonial states had a problem: they had either been carved out as one-commodity producers or else they had developed into one-crop countries. With no economic diversification, these states additionally had less power than the private corporate cartel. They had only one crop, and unless other countries that produced the same crop banded together, they had to accept whatever terms the private corporate cartel offered...
(181): Because of the low level of capital available in the darker nations, the regimes tried to stregnthen the one economic process that had already been perfected: the colonial crop. The regimes in the Third World relied on the singular colonial crop. They also had little capital to refine and process the crop to create some value before export. In other words, its raw material frequently left the old colonial rail lines and ports in its rawest form possible for transport, and brought a mediocre return to the former colony.... The low level of capital in the arsenal of the darker nations meant that they gave "reasonable" terms to the transnational conglomerates that worked in the private cartel, and had the funds to explore and excavate, cultivate and transport. The concessions given to these conglomerates meant that the regime frequently lost control over production, and would only be able to resrict the giants through licenses, increased taxation, and other minor irritations.
(181): By 1980, of the 115 "developing countries," according to UNCTAD, at least half remained dependent on one commodity for over 50 percent of their export revenues. Most of these countries had come to rely on petroleum exports.
183): [JUAN PABLO PEREZ ALFONZO] In April 1959, Nasser's Egypt and the Arab League hosted the first Arab Petroleum Congress... The congress gathered just as the Seven Sisters reduced the posted price for Middle East oil. Venezuela's representative, Juan Pablo Perez Alfonzo, was an experienced AD politician. Perez Alfonzo made his political mark in 1943 during a debate in Venezuela over the oil concessions enjoyed by the Seven Sisters... In 1958, Perez Alfonzo joined the AD government as the minster of mines and hydrocarbons. He led the charge against the Seven Sisters, earned the government 60 percent of the oil revenue, and established the notion that Venezuela had sovereignty over its subsoil so that the entire oil industry was a public utility.
(184): Exxon egged on the nationalists with another price reduction (this time, by 7 percent of the posted price). When the oil producers met in Baghdad in September 1960, a month after the decrease, they came with a purpose: to form a public cartel of oil producers. After a week of deliberation, the group created OPEC. The five charter members nominally controlled or at least produced 82 percent of the world's crude exports...
(185-186): A major disappointment in this was the failure of the OPEC nations to use their massive oil profits for the creation of such a fund to help stabilize other commodities. Not only did the OPEC powers refuse to contribute to a global fund to stabilize raw material prices but they also had a poor record int heir ad contributions to their neighbors... Despite its political origins, OPEC became an economic cartel as it fought to defend oil prices and do little else...
(187): [FAUX NATIONALIZATION] In sum, the nationalization of economic assets from transnational firms replicated the problems of political independence from colonialism; it was an advance, but it created an illusion of freedom. The Seven Sisters transferred the burdens of extraction on to the state, while it continued to enjoy the fruits of the industry. Furthermore, the state's newfound power over the fields and its ability to negotiate with the Seven Sisters over the prices and taxes moved it to bargain on two sides of the commodity cycle: with the oil workers for lower wages, and the Seven Sisters for higher prices. To raise the export receipt and increase the coffers of the state did not itself presage a strategy for the generation of equity.
(191): The announcement of socialism came alongside the recognition that its construction would not be easy in a formerly colonized state. Not only had the German and British colonial regimes stripped bare the economy of eastern Africa but they also left behind a state apparatus designed to exploit and not to liberate. The institutions of the state and the civil bureaucracy grew from a culture of imperial hierarchy, a value quite removed from the egalitarianism of national liberation... Hemmed in by pressures from the advanced industrial states, the aristorcratic rural classes, and the emergent mercantile classes, the new state had little time. Things had to change in a hurry. But socialism requires imagination and time. It cannot be made in a hurry. To create socialism in a hurry without mass support, and institutions that can channel this support, led many Third World states to disaster.
(192): Instead of foreign aid or commercial loans, the national liberation states developed a three-pronged approach to development: the nationalization of the commanding heights of the economy (finance, infrastructure, energy, crucial raw material extraction, and capital goods production), the development of the agricultural sector, and the encouragement of industrialization. The plan expected the capital for industrialization to come from the nationalization of finance and an increase in the agricultural surplus. Nationalization put financial decisions in the hands of the state rather than transnational corporations, and it arrested the hemorrhage of capital...
(193): The Third World agenda, for states such as India and Egypt, was not socialist as much as welfarist. The state centralized and nationalized the commanding heights of the economy to ensure that its dominant classes gained some purchase on a complex international economy... Tanzania under Nyerere's TANU attempted something more than the welfarism of India and Egypt. The Arusha Declaration drew from the socialist experiments: there was an insistence that the state must create equity among the population, and that this equity needed to be crafted at the level of production and not simply consumption.
(194): [BUT] [T]he state talked of the people, and yet it stoopd apart from them... The TANU regime came to power, abolished the trade unions, and collected the unions' personnel into one government-authorized union, the National Union of Tanganyika Workers (1964). The natural aliies of a socialist experiment were marginalized. There was no well-developed strategy for how the state planned to build power for its ideas. Instead, the state stood above the people, directing them, preaching "socialism from above."
(196-197): Tanzanian ujaama is quite of a piece with a vast number of examples of Third World development or Third World socialism in a hurry. Most of the Third World states hurriedly built industrial factories and dams, cleared forests, and moved populations. This labor came for many reasons, of which the most important was to rapidly increase the productive capacity of the new nation, to make a Great Leap Forward into a moment of propserity before the political capital of the liberation movements had been spent... The intentions of the leaership, by all accounts, were not malevolent. Yet its modernist dream--to adminster nature and society, and build vast industrial monuments without either a democratic governance structure or a mobilized population--led to the worst excesses of commandism and bureaucratism. In India, in the period from the late 1940s to the late 1980s, the state displaced some 25 million people, while in the same period, the Chinese shifted some 40 million people. These are the dramatic figures, because these states have substantial populations, but in small countries the percentage of the population that the state shifted by its bureaucratic commandism is staggering (in Tanzania, a fifth of the population was resettled).
(199): In 1961, after two five-year plans, India's Nehru rued the failure of his regime to tend to the sufferings of the population... Market socialism or the mixed economy was a socialism of consumption not production. In the attempt to industrailize and create agricultural change, there was only a muted effort to change the relations and methods of production. The process of industrial as well as agricultural production remained similar to that found in any advanced capitalist country: workers had no say in the process of production, which was run by a detached management.
(200): In 1932, the El Salvadorian rural elites engineered the massacre of twenty thousand peasants who occupied private land and opposed export-led agriculture.
(200): When India won its freedom, the Congress relied on rural power brokers to deliver the vote. It did not want to alienate the landowners who financed these agents of the party.
(200): In the Philippines, the Land Reform Act of 1955 froze land relations in plantation-like conditions...
(208-209): [In 1983] NAM came to New Delhi at a crucial time for Indira Gandhi... When Nehru died in 1964, Indira Gandhi took on a major role in the Congress Party. In 1966, she won elections and was prime minister until 1977. She returned to power in 1980 with a weakend mandate because of the excesses of the martial law (Emergency) regime she ran from 1975 to 1977. When NAM came to Delhi, the ciety was under siege... In Nellie, Assam, five thousand refugees were killed...
(209): Between the 1966 Tricontinental and the 1979 sixth NAM meeting in Havana, a number of important events transpired. A Marxist revolution in Ethiopia (1974) inaugurated a set of defeats for the imperialist bloc. In 1975, the National Liberation Front defeated the US in South Vietname and the Pathet Lao took Vientiane. That same year, five Portuguese colonies in AFrica seized their independence after the Salazar dictatorship ended in Lisbon. In 1978-1979, the Marxists seized control of Afghanistan, the New Jewel Movement took power in Grenada, and the Sandinista revolution prevailed in Nicaragua. Additionally, a number of African regimes (such as in Benin, Madagascar, Liberia, and Libya) adopted Marxism-Leninism as their official ideology. The mood in Havan was exuberant... The conflict between the capitalist and Communist worlds did not mean neutrality in that struggle. The Havana meeting raised the question of a formal anti-imperialist alliance between NAM and the USSR--a move pushed by Castro...
(210) [BUT] Between Havana and New Delhi, a great deal occured to dampen this enthusiasm. Ronald Reagan's forward policy extended the increase in military expenditure initiated by Jimmy Carter...
(215): By 1983, the NAM states produed less than a tenth of the worlds' industrial output, although transnational corporations controlled three-quarters of the industrial output in these states. Among the NAM states, five produced more than 80 percent of this total industrial output: Brazil, South Korea, India, Mexico, and Argentina.
(215): The changes in the general character of NAM were reflected in the changes within India. By the mid-1970s, India's economic agenda floundered. The long-standing failure to reconstruct agrarian relations, an excessive reliance on industrial development over any other sector, a burgeoning military sector... A dissatisfied population rose in a host of rebellions... The party of the freedom movement claimed to rule with the anticolonial nationalist agenda, but it adopted economic policies inimical to the vast mass of the population...
(217): Mexico, an oil-rich country, defaulted on $80 billion in public-sector debt in 1982. Forty countries joined Mexico in arrears, and a year later another twenty-seven had to restructure their massive debt. The total debt in the brusied nations was $500 billion, which at the time threatened the financial stability of the world market.
(218): The domestic elites were always a weak link for the national liberation agenda. When the benefits of import substitution produced a more aggressive and self-confident bourgeoisie, this class wanted to break the cross-class alliance. This class looked forward to a rearrangement of alliances, with a closer relationship with the "West" for economic gain and consumer pleasure. The erosion of the Third World state allowed this class to carry the standard of the First World. In India, by the early 1980s, this class was the size of the French population.
(218): [ANTICOLONIAL NATIONALISM BECOMES PAROCHIAL, AS ECONOMIC AGENDA IS DERAILED] With the demise of import substitution and no other plans for economic sovereignty on the table that appealed to the masses, the Congress Party lost its claim to anticolonial Third World nationalism. Its leaders knew this implicitly, because Indira Gandhi's clique immediately fanned the flames of ethnic and religious difference to reclaim their electoral majority. The appeal to the "Hindu" majority against the secessionism in the Punjab and Assam as well as against Muslims and oppressed castes opened the door for the corruption of the idea of anticolonial nationalism. The massacre at Nellie, for instance, was a result of this venal appeal. By the late 1970s and early 1980s, the Congress Party was met toe to toe on this line, and it was found wanting by a genuinely cruel cultural nationalist political force, the Bharatiya Janata Party (BJP).
(219): The great home of the bourgeois social imagination was that the international order be based on free markets and individual identities, and that the deracinated latter be able to benefit from the unhampered former. Rather than realize [this] dream, what manifested itself wa the simultaneous growth of IMF-driven globalization and parochially cruel nationalism. Sectarian nationalism in the formerly colonized world is not only an adequate form of globalization, especially as the socialist bloc collapsed later in the 1990s, but it seems to be the form that IMF-driven globalization has taken since the late 1970s.
(220): In 1972, the Third World expended $33 billion on arms, already a vulgar amount. A decade later, the figure totaled $81 billion. In 1977, the Cuban government proposed that $650 billion wasted on the worlds arms trade be transferred into a capital infusion into the Third World. The G-7 did not consider the proposal, the corporate media mocked it, and NAM did not give it serious attention...
(222): In the 1970s, the IMF shifted its three-decades old mission from the provision of short-term credit to countries with current account deficits (lender of the last resort) to the use of its crucial finances as a weapon to demand structural economic changes mainly in the bruised nations. In other words, the new IMF eroded the institutions of state sovereignty...
(154): The island of Bali lost about 8 percent of its population, or a hundred thousand people, in the assault on the PKI in 1965-1966.... The actual massacre came at the hands of the army and the activists of the right-wing, mainly theocratic, political parties. They had lists of names of activists and organizers of the PKI and its affiliated organizations. They used these lists to gather the victims for execution. Although the US and Australian governments neither instigated nor conducted the massacre, they encouraged the purge, fattened the lists of Communists for the army, funded the paracommandos, and supported the media effort to blame the entire genocide on the Communists.
(156-158): Moscow and Beijing remained mute. Since the 1920s, the USSR had an ambiguous relationship with Communist parties in the darker nations. On the one hand, the USSR had been the one state that gave enormous ideological, diplomatic, and material support to many independence struggles... From the early 1920s to 1935, [the Comintern] urged Communists in the darker nations to keep some distance between their activity and that of the nationalist groups in their regions... In China, though, the Comintern pushed the Communists into an alliance with the nationalist Kuomintang that ended in the disastrous Kuomintang 1928 massacre of the Communists in Shanghai... At the 1935 Seventh Comintern Congress, the Soviet Communists reacted to the development of fascism within Europe by telling Communist parties to work in a "popular front" with all patriotic social forces... While the strategy of the Comintern developed out of the German Communist Party's failure to stop the Nazi rise to power in 1933, that experience now came to dominate the work of Communists in far different settings... By the advent of the Cold War in the late 1940s, the class collaborationist line had substantially weakened the Communist parties in the Third World, and they became easy prey for attack by the CIA and the nationalist regimes... The concepts of the national democratic state and new democracy allowed Moscow and Beijing to accept noncommunist regimes and national liberation movements as sufficient for the nonindustrial world.... Nasser's Egypt, Qasim's Iraq, Boumedienne's Algeria, Indira Gandhi's India, New Win's Burma, Sekou Toure's Guinea, Ayub Khan's Pakistan, and Mobido Keita's Mali became part of the USSR's and the People's Republic of China's most favored states, even though most of these leaders suppressed their local Communist parties.
(158-159): By the early 1960s, the three largest Communist parties (outside a Communist state) in Asia, Africa, and the Arab lands were the PKI of Indonesia, Sudan's al-Hizb al-Shuyu'i al-Sudani (SCP), and the Iraqi Communist Party (ICP), respectively. These parties commanded the respect of a large section of their societies... Within a decade, these three parties would be devastated when the national bourgeoisie (with the assistance of the United States as well as a blind eye from Moscow and Beijing) would call the military out of the barracks to exterminate them. If the USSR and the People's Republic of China had taken a strong stand in any one of these instances, they might have given courage to Communists elsewhere... Instead, the silence scared Communists into alliances with political forces that wanted to use and then destroy them. The Communists were useful. Sukarno needed the PKI for its program and cadre. When Brigadier Qasim overthrew the Iraqi monarchy (1958) and Colonel Jaafar al-Nimeiri rejected a corrupt military junta in Sudan (1969), both leaned on the strong Communist parties... A military coup has little institutional basis for legitimacy...
(159): [BAATH PARTY, SADDAM, THE SOVIETS AND THE ICP] When the ICP took advantage of the opening to revive its banned organizations... [it] grew to more than twenty-five thousand cadre members with an additional mass membership of a million (about a fifth of the total population of Iraq). The growth of the ICP and its social power terrfied the dictatorship of Qasim. Shortly after Qasim came to power, the founder of the Baath, Michel 'Aflaq, visited Baghdad from Damascus to promote his party over the ICP. "We represent the Arab spirit against materialist Communism"... The Baath had only three hundred members in Iraq, and would grow to only three thousand in the early 1960s. In May 1959, Husain ar-Radi, the ICP's first secretary, entered a politburo meeting and argued that the time had come for the party to make a move for power. He was outvoted. The Soviets had sent an envoy with a message not to provoke Qasim. The Baath took the initiative; the US backed it. The ICP defended the nationalist military regime when the Baath attempted a coup in October 1959... The Baath's way had been prepared, and it eventually captured the state in 1963... In 1968 Hussein came to power. The USSR became a major ally of Hussein, who cultivated a split in the battered ICP... [A] ppro-Soviet faction of the ICP joined hands with him. The anti-Baath group...felt the wrath of the Baath's militia... The ICP that remained within the government enabled Iraq's 1972 friendship treaty with the USSR, but as Hussein increased his hold on the country he began a campaign against the ICP itself. In 1978, Hussein had the "loyal" party members arrested, executed many cadre... Hussein's campaign against the ICP led to his enhanced stock among Washinton's policymakers, whose own alliance with him began in 1983. The remainder of the ICP's cadre either fled overseas or else remained within Iraq to continue the struggle, notably in the Kurdish regions (long a bastion of the Left).
(160-161): [SUDAN, NIMEIRI AND THE COMMUNISTS] In Sudan, Nimeiri came to power on a Nasserite agenda, and he, like Qasim, could not rule without the SCP. After the coup he banned all political parites, but allowed the SCP to continue its activities. Founded in 1944, the SCP was the onl political party with national standing because, unlike the sectarian and racialist parties, it recruited equally in the north and south, among Christians as well as Muslims. Nimeiri needed the SCP. In the typical formula, Nimeiri first went after his right flank. In 1970, he began an assault on the reactionary Umma Party... When that party had been substantially pacified, Nimeiri turned his attention to the SCP. The brutal repression of the SCP drove the Communists to attempt a coup of their own along with sympathetic army officers... When news of the events in Sudan reached the Soviet leadership, it tried to negotiate with the Nimeiri government, as well as with the Egyptians and the Libyans, for asylum to the SCP's leaders. Once rebuffed, it did not pursue the matter. It is not that Moscow felt nothing for its comrades in the tropics, but that the fortunes of the Communist parties in the Third World came second to the strategy mapped out by the USSR and the People's Republic of China. When the Nimeiri regime executed the SCP leaders despite the entreaty from the USSR, Moscow rewarded the dictator with economic and political treaties as well as a special honored place as a delegate to the Communist Party of the USSR's twenty-fourth Congress in late 1971.
(162): As Sukarno fell, no significant word of protest came from New Delhi, Belgrade, Rangoon, Cairo or Accra... Indonesia's Sukarno had played a crucial role in the creation of the political platform of the Third World, and Bandung had been its omphalos. Yet there was silence. The personal or political demise of the five major leaders of the progressive tendency in Bandung reveals much about the collapse of solidarity: Nehru died in 1964, Both U Nu and Nkrumah had been recently deposed by military coups, Nasser's role had been weakened by the collapse of his United Arab Republic, and Tito had begun a genial rapproachement with the USSR.
(163): At the 1977 NAM meeting in New Delhi... neither Iraq, Sudan, nor Indonesia were laughed out of the room--their pogroms against the Communists in each case became the sacrosanct "internal affairs" of each country. The major Third World powers accepted Indonesia, Sudan, Iraq, and others simply because they signed on to the basic principles of non-alignment, and because they shared a similar international economic analysis... The destruction of the left had an enormous impact on the Third World. The most conservative, even reactionary social classes attained domiannce over the political platform created in Bandung. As an adjunct to the military regimes, the political forces that emerged rejected the ecumenical anticolonial nationalism of the Left and the liberals for a cruel cultural nationalism that emphasized racialism, religion, and hierarchy.
(166): In 1920, the Karakhan Manifesto from the USSR repudiated the treaties between the Czarist regime and the Manchu Empire, with the statement that the Soviet Republic "renounces all the annexations of Chinese territory..." In the late 1950s, the USSR would rescind this statement and insist on territory that it had abrogated.
(167-168): Nehru's Congress Party did not expend foreign exchange on the import of foreign arms. The armed forces had to do with British remainders and whatever could be produced domestically. From 1951-1962, the Indian treasury spent less on arms than either the British government before it or the Indian governments that would follow the Sino-Indian war (1962). Despite the war with Pakistan in 1947-48, the Indian government reduced its military expenses to 2 percent of its total budget... After the war, the Indian government would not stint on its military to become the world's largest importer of weapons by the 1990s.
(168): [WHY 1962 WAR]: Another way to look at the Sino-Indian border war is to see it as a commonplace occurrence in the new postcolonial states that had, as far as the borders went, begun to adopt a more "European" notion of nationalism than their own previous anticolonial form... Indeed, the Himalays that run along the borders between today's states of Burma, Nepal, India, China, Pakistan, and Afghanistan are home to people at high altitudes whose lives rely on transit across the mountain passes to the plains for trade or religious pilgrimages. The boundary is not in the interest of these people...
(170): Colonial powers based their borders on what they were able to conquer, and guarded these boundaries in terms of security rather than any other principle. The cartography of the Himalayas by the British had little to do with the needs and desires of the people who lived in the hills; it had everything to do with the creation of buffer states to protect their Indian empire from the threats by the Czarist Russians and the Manchu Chinese. In 1893, the British created the Durand line, which ran right through the homelands of the Pashtu speakers so as to maintain Afghanistan as a border territory between Russia and India, just as in 1914, the British fashioned the McMahon line to divide their Indian domains from those of the Chinese.
(173): [In the 3rd World, not military Keynesianism, but militarization by gutting of welfare state] WB President Robert McNamara's study of military expenditures in the darker nations found that states had quintupled that one line item between 1960 and 1988; military expenditure increased at twice the rate of per capita income.
(174): China's foreign policy wound its way from Bandung to a rapproachment with the United States and its impossible alliances with dictatorial regimes. As China began its new relationship with the United States, the Chinese government praised the Greek military junta (1972), took the side of Pakistan against the liberation of Bangladesh (1971), welcomed Niemeiri to Beijing after the dictartorship's massacre of its Communists (1971), sent emergency aid to the Sri Lankan government to defeat the left-wing Lanka Samaja Party's insurrection, and quickly recognized Pinochet's coup in Chile (it expelled the Chilean ambassador to China when he refused to support Pinochet). The Sino-Indian war compromised the credibility of India and China.
(178): In 1850, fossil fuels supplied only 6 percent of the world's energy needs, while humans and animals provided the rest. A century later, human and animal power had declined to 6 percent, while fossil fuel use accounted for the remainder.
(178): By 1950, the main energy corporations organized themsleves into seven conglomerates known as the Seven Sisters: Exxon, Shell, BP, Gulf, Texaco, Mobil, and Socal (or Chevron). Even though oil is a lucrative product, in its crude state it is nothing more than a raw material. To remove oil from the ground requires an immense capital outlay, both for exploration and extraction. This initial capital outlay is the carrot and stick used by the Seven Sisters. They came to the oil lands in the early years and staked out "concessions" for themselves... These seven firms, in 1950, controlled 85 percent of the crude oil production in the world outside Canada, China, the USSR, and the United States...
(178): The regimes that ruled over the oil lands could have used the rent paid by the oil companies to increase the social wage--to expand public education, health, transport, and other such important avenues for the overall advancement of the people. Instead, the oil rent went toward the expansion of luxury consumption for the bureaucratic-managerial or monarchal elite--the oligarchy in Venezuela or the Ibn Saud clan in Saudi Arabia--and to oil the military machine (the oil war of Bolivia-Paraguay, 1932-1935, was a preview of the 1967-1970 Nigerian civil war)...
(178-179): In 1957 alone the Seven Sisters made $828 million in Venezuela, whose regime allowed them to remit all their profits without restrictions... The United States supported the junta that came to power in the 1940s, whose goal was to maintain good relations with the oil cartel rather than pusrue social development policies... The oil wealth was not, therefore, reinvested for the overall development of the country. The junta reversed the land reforms of a decade previously, sold the land to private speculators, and moved Venezuela to become a net importer of food grains... In 1958 the new relatively progressive government led by Accion Democratica (AD) expressed an interest in recouping a larger share of the profits... Venezuela had been able to increase its share of the world oil market for serendipitous reasons. Mexcio used to be a major provider of the world's oil (25%). After the Mexican Revolution (1911), the new regime attempted to get a better handle on its oil profits... In 1934, after two decades of tussle, the general who had once guarded the oil region, Lazaro Cardenas, became the president... In 1938, Cardenas nationalized the oil industry... The Seven Sisters moved their focus from Mexico to Venezuela...
(180-181): In the late 1940s, Raul Prebisch complained about the low prices earned by the raw material producers because private cartels controlled international prices. Whether the crop is cocoa, sugar, rubber, or oil, the structure of the commodity cartel did not differ much... The declining price of raw materials over time meant that the Third World would never be able to earn enough from the sale of raw materials to effect both meaningful social development and industrial growth. Many of the formerly colonial states had a problem: they had either been carved out as one-commodity producers or else they had developed into one-crop countries. With no economic diversification, these states additionally had less power than the private corporate cartel. They had only one crop, and unless other countries that produced the same crop banded together, they had to accept whatever terms the private corporate cartel offered...
(181): Because of the low level of capital available in the darker nations, the regimes tried to stregnthen the one economic process that had already been perfected: the colonial crop. The regimes in the Third World relied on the singular colonial crop. They also had little capital to refine and process the crop to create some value before export. In other words, its raw material frequently left the old colonial rail lines and ports in its rawest form possible for transport, and brought a mediocre return to the former colony.... The low level of capital in the arsenal of the darker nations meant that they gave "reasonable" terms to the transnational conglomerates that worked in the private cartel, and had the funds to explore and excavate, cultivate and transport. The concessions given to these conglomerates meant that the regime frequently lost control over production, and would only be able to resrict the giants through licenses, increased taxation, and other minor irritations.
(181): By 1980, of the 115 "developing countries," according to UNCTAD, at least half remained dependent on one commodity for over 50 percent of their export revenues. Most of these countries had come to rely on petroleum exports.
183): [JUAN PABLO PEREZ ALFONZO] In April 1959, Nasser's Egypt and the Arab League hosted the first Arab Petroleum Congress... The congress gathered just as the Seven Sisters reduced the posted price for Middle East oil. Venezuela's representative, Juan Pablo Perez Alfonzo, was an experienced AD politician. Perez Alfonzo made his political mark in 1943 during a debate in Venezuela over the oil concessions enjoyed by the Seven Sisters... In 1958, Perez Alfonzo joined the AD government as the minster of mines and hydrocarbons. He led the charge against the Seven Sisters, earned the government 60 percent of the oil revenue, and established the notion that Venezuela had sovereignty over its subsoil so that the entire oil industry was a public utility.
(184): Exxon egged on the nationalists with another price reduction (this time, by 7 percent of the posted price). When the oil producers met in Baghdad in September 1960, a month after the decrease, they came with a purpose: to form a public cartel of oil producers. After a week of deliberation, the group created OPEC. The five charter members nominally controlled or at least produced 82 percent of the world's crude exports...
(185-186): A major disappointment in this was the failure of the OPEC nations to use their massive oil profits for the creation of such a fund to help stabilize other commodities. Not only did the OPEC powers refuse to contribute to a global fund to stabilize raw material prices but they also had a poor record int heir ad contributions to their neighbors... Despite its political origins, OPEC became an economic cartel as it fought to defend oil prices and do little else...
(187): [FAUX NATIONALIZATION] In sum, the nationalization of economic assets from transnational firms replicated the problems of political independence from colonialism; it was an advance, but it created an illusion of freedom. The Seven Sisters transferred the burdens of extraction on to the state, while it continued to enjoy the fruits of the industry. Furthermore, the state's newfound power over the fields and its ability to negotiate with the Seven Sisters over the prices and taxes moved it to bargain on two sides of the commodity cycle: with the oil workers for lower wages, and the Seven Sisters for higher prices. To raise the export receipt and increase the coffers of the state did not itself presage a strategy for the generation of equity.
(191): The announcement of socialism came alongside the recognition that its construction would not be easy in a formerly colonized state. Not only had the German and British colonial regimes stripped bare the economy of eastern Africa but they also left behind a state apparatus designed to exploit and not to liberate. The institutions of the state and the civil bureaucracy grew from a culture of imperial hierarchy, a value quite removed from the egalitarianism of national liberation... Hemmed in by pressures from the advanced industrial states, the aristorcratic rural classes, and the emergent mercantile classes, the new state had little time. Things had to change in a hurry. But socialism requires imagination and time. It cannot be made in a hurry. To create socialism in a hurry without mass support, and institutions that can channel this support, led many Third World states to disaster.
(192): Instead of foreign aid or commercial loans, the national liberation states developed a three-pronged approach to development: the nationalization of the commanding heights of the economy (finance, infrastructure, energy, crucial raw material extraction, and capital goods production), the development of the agricultural sector, and the encouragement of industrialization. The plan expected the capital for industrialization to come from the nationalization of finance and an increase in the agricultural surplus. Nationalization put financial decisions in the hands of the state rather than transnational corporations, and it arrested the hemorrhage of capital...
(193): The Third World agenda, for states such as India and Egypt, was not socialist as much as welfarist. The state centralized and nationalized the commanding heights of the economy to ensure that its dominant classes gained some purchase on a complex international economy... Tanzania under Nyerere's TANU attempted something more than the welfarism of India and Egypt. The Arusha Declaration drew from the socialist experiments: there was an insistence that the state must create equity among the population, and that this equity needed to be crafted at the level of production and not simply consumption.
(194): [BUT] [T]he state talked of the people, and yet it stoopd apart from them... The TANU regime came to power, abolished the trade unions, and collected the unions' personnel into one government-authorized union, the National Union of Tanganyika Workers (1964). The natural aliies of a socialist experiment were marginalized. There was no well-developed strategy for how the state planned to build power for its ideas. Instead, the state stood above the people, directing them, preaching "socialism from above."
(196-197): Tanzanian ujaama is quite of a piece with a vast number of examples of Third World development or Third World socialism in a hurry. Most of the Third World states hurriedly built industrial factories and dams, cleared forests, and moved populations. This labor came for many reasons, of which the most important was to rapidly increase the productive capacity of the new nation, to make a Great Leap Forward into a moment of propserity before the political capital of the liberation movements had been spent... The intentions of the leaership, by all accounts, were not malevolent. Yet its modernist dream--to adminster nature and society, and build vast industrial monuments without either a democratic governance structure or a mobilized population--led to the worst excesses of commandism and bureaucratism. In India, in the period from the late 1940s to the late 1980s, the state displaced some 25 million people, while in the same period, the Chinese shifted some 40 million people. These are the dramatic figures, because these states have substantial populations, but in small countries the percentage of the population that the state shifted by its bureaucratic commandism is staggering (in Tanzania, a fifth of the population was resettled).
(199): In 1961, after two five-year plans, India's Nehru rued the failure of his regime to tend to the sufferings of the population... Market socialism or the mixed economy was a socialism of consumption not production. In the attempt to industrailize and create agricultural change, there was only a muted effort to change the relations and methods of production. The process of industrial as well as agricultural production remained similar to that found in any advanced capitalist country: workers had no say in the process of production, which was run by a detached management.
(200): In 1932, the El Salvadorian rural elites engineered the massacre of twenty thousand peasants who occupied private land and opposed export-led agriculture.
(200): When India won its freedom, the Congress relied on rural power brokers to deliver the vote. It did not want to alienate the landowners who financed these agents of the party.
(200): In the Philippines, the Land Reform Act of 1955 froze land relations in plantation-like conditions...
(208-209): [In 1983] NAM came to New Delhi at a crucial time for Indira Gandhi... When Nehru died in 1964, Indira Gandhi took on a major role in the Congress Party. In 1966, she won elections and was prime minister until 1977. She returned to power in 1980 with a weakend mandate because of the excesses of the martial law (Emergency) regime she ran from 1975 to 1977. When NAM came to Delhi, the ciety was under siege... In Nellie, Assam, five thousand refugees were killed...
(209): Between the 1966 Tricontinental and the 1979 sixth NAM meeting in Havana, a number of important events transpired. A Marxist revolution in Ethiopia (1974) inaugurated a set of defeats for the imperialist bloc. In 1975, the National Liberation Front defeated the US in South Vietname and the Pathet Lao took Vientiane. That same year, five Portuguese colonies in AFrica seized their independence after the Salazar dictatorship ended in Lisbon. In 1978-1979, the Marxists seized control of Afghanistan, the New Jewel Movement took power in Grenada, and the Sandinista revolution prevailed in Nicaragua. Additionally, a number of African regimes (such as in Benin, Madagascar, Liberia, and Libya) adopted Marxism-Leninism as their official ideology. The mood in Havan was exuberant... The conflict between the capitalist and Communist worlds did not mean neutrality in that struggle. The Havana meeting raised the question of a formal anti-imperialist alliance between NAM and the USSR--a move pushed by Castro...
(210) [BUT] Between Havana and New Delhi, a great deal occured to dampen this enthusiasm. Ronald Reagan's forward policy extended the increase in military expenditure initiated by Jimmy Carter...
(215): By 1983, the NAM states produed less than a tenth of the worlds' industrial output, although transnational corporations controlled three-quarters of the industrial output in these states. Among the NAM states, five produced more than 80 percent of this total industrial output: Brazil, South Korea, India, Mexico, and Argentina.
(215): The changes in the general character of NAM were reflected in the changes within India. By the mid-1970s, India's economic agenda floundered. The long-standing failure to reconstruct agrarian relations, an excessive reliance on industrial development over any other sector, a burgeoning military sector... A dissatisfied population rose in a host of rebellions... The party of the freedom movement claimed to rule with the anticolonial nationalist agenda, but it adopted economic policies inimical to the vast mass of the population...
(217): Mexico, an oil-rich country, defaulted on $80 billion in public-sector debt in 1982. Forty countries joined Mexico in arrears, and a year later another twenty-seven had to restructure their massive debt. The total debt in the brusied nations was $500 billion, which at the time threatened the financial stability of the world market.
(218): The domestic elites were always a weak link for the national liberation agenda. When the benefits of import substitution produced a more aggressive and self-confident bourgeoisie, this class wanted to break the cross-class alliance. This class looked forward to a rearrangement of alliances, with a closer relationship with the "West" for economic gain and consumer pleasure. The erosion of the Third World state allowed this class to carry the standard of the First World. In India, by the early 1980s, this class was the size of the French population.
(218): [ANTICOLONIAL NATIONALISM BECOMES PAROCHIAL, AS ECONOMIC AGENDA IS DERAILED] With the demise of import substitution and no other plans for economic sovereignty on the table that appealed to the masses, the Congress Party lost its claim to anticolonial Third World nationalism. Its leaders knew this implicitly, because Indira Gandhi's clique immediately fanned the flames of ethnic and religious difference to reclaim their electoral majority. The appeal to the "Hindu" majority against the secessionism in the Punjab and Assam as well as against Muslims and oppressed castes opened the door for the corruption of the idea of anticolonial nationalism. The massacre at Nellie, for instance, was a result of this venal appeal. By the late 1970s and early 1980s, the Congress Party was met toe to toe on this line, and it was found wanting by a genuinely cruel cultural nationalist political force, the Bharatiya Janata Party (BJP).
(219): The great home of the bourgeois social imagination was that the international order be based on free markets and individual identities, and that the deracinated latter be able to benefit from the unhampered former. Rather than realize [this] dream, what manifested itself wa the simultaneous growth of IMF-driven globalization and parochially cruel nationalism. Sectarian nationalism in the formerly colonized world is not only an adequate form of globalization, especially as the socialist bloc collapsed later in the 1990s, but it seems to be the form that IMF-driven globalization has taken since the late 1970s.
(220): In 1972, the Third World expended $33 billion on arms, already a vulgar amount. A decade later, the figure totaled $81 billion. In 1977, the Cuban government proposed that $650 billion wasted on the worlds arms trade be transferred into a capital infusion into the Third World. The G-7 did not consider the proposal, the corporate media mocked it, and NAM did not give it serious attention...
(222): In the 1970s, the IMF shifted its three-decades old mission from the provision of short-term credit to countries with current account deficits (lender of the last resort) to the use of its crucial finances as a weapon to demand structural economic changes mainly in the bruised nations. In other words, the new IMF eroded the institutions of state sovereignty...
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vijay prashad
Friday, February 27, 2009
from "the darker nations: a people's history of the third world" by vijay prashad (part II)
(62): After centuries of imperialism, the new nations had been left with economies that relied on the sale of raw material and the import of finished goods. This fundamental imbalance meant that countries like Argentina had to export vast amounts of raw materials at relatively low prices, whereas their import bills would be inflated with the high prices commanded by industrially manufactured goods.
(62-63): Until the early decades of the twentieth century, the dominant classes in Argentina had no brief for nation building. The oligarchs... ran the country with an iron fist and held their own wealth in European banks (which mean that they preferred fiscal policies that favored Europe's currencies against Argentina's economic strength). This detachment of the elite fueled the growth of a socialist movement... Argentina's industrialization grew in the breach, when European and US capital neglected the region for the period between the Depression of the 1920s and the wars of the 1940s... British capital owned most of Argentina's railroads and the Swiss, the United States, and the British owned almost half of its industries. The authoritarian populist Juan Peron bought the railroads from the British...
(63-64): A combination of technological advantages, unionization, and the vagaries of the prices of primary products meant that the core enjoyed a sizable gain in the "terms of trade."
(66): Why is India poor, asked Dadabhai Naoroji? It is not the pitiless operation of economic laws, but it is the thoughtless and pitiless action of the British policy; it is the pitiless eating of India's substance in India, and the further pitiless drain to England; in short, it is the pitiless perversion of economic laws by the sad bleeding to which India is subjected, that is destroying India." The Third World bled to make Europe grow. Modernization theory avoided this, and rather sought to "Protestantize" the cultures of the world to seed capitalist culture.
(66): Colonialism ravaged the world, and left more than half of it bereft of capital and with a surfeit of poverty. In 1500, the average per capita income in Europe ran only three times more than that in Africa and Asia, whereas in 1960, it was ten times greater.
(67): Prebisch rejected the theory of comparative advantage, because he demonstrated that each region of the world could enjoy the fruits of modernity as much as the others. [T]rade is crucial because some regions have smaller markets than otehrs, and raw materials and agricultural lands are not evenly distributed along national lines. But the basis of trade had to be altered. It could not be premised on the idea that some states are naturally good at being harvesters of low-value raw materials and others are naturally proficient at being producers of high-value-added finished products. The theory of comparative advantage, Prebisch claimed, stifles genuine economic development.
(68): The contempt of the First World's economists was palpable. John Maynard Keynes, for instance, complained to the English government about the invitations being sent out to the darker nations for the Bretton Woods Conference. Those that had been invited from Colombia to Venezuela, from Liberia to the Philippines, he noted, "clearly have nothing to contribute and will merely encumber the ground." For Keynes, this is "the most monstrous monkey-house assembled for years." Only technocrats from the advanced industrial states should be allowed to formulate the rules, because otherwise thsoe from the raw material states would begin to make unbearable demands.
(71): The US president of the World Bank, Eugene Black, quite forthrightly remarked, "Our foreign aid programs constitute a distinct benefit to American business. The three major benefits are (1) foreign aid provides a substantial and immediate market for United States goods and services, (2) foreign aid stimulates the development of new overseas markets for United States' companies, (3) foreign aid orients national economies toward a free enterprise system in which United States' firms can prosper.
(73): [BARAN'S CRITIQUE OF ISI] Paul Baran published The Political Economy of Growth in which he demonstrated the futility of foreign aid and the import-substitution industrialization strategy... While Baran might have overstated his thesis and the role of monopoly capitalism within the darker nations, his critique on the reliance on the growth strategy was on point. The aid from outside (whether capitalist or socialist) purchased time for the dominant elites, who used that money to prevent necessary social transformation. A more substantial way for development would be the destruction of feudal social relations, band by the socialization of production. These parasitic elites acceded to the Prebisch logic in order to benefit their own class interests, rather than move their societies to socialism. The cominant classes in each of these societies purchased third-rate, out-of-date plants and machinery from the advanced industrial states, and paid top dollar for them... Prebisch recognized this major limitation in the Third World order: "We thought that an acceleration of the rate of growth would solve all problems. This was our great mistake." What was needed alongside growth were "changes in the social structure," indeed "a complete social transformation."
(74): It had already become sufficient to be critical of the First World alone, which became a shield that protected the national bourgeoisie from criticism for its own lack of imagination and self-sacrifice. In other words, development theory and public policy emphasized economic growth as an end in itself without a built-in consideration for equity.
(75): One million dollars. That's all it took in 1953 for the CIA to overthrow a nationalist government. Langley's man in Tehran was Kermit "Kim" Roosevelt, the grandson of Teddy Roosevelt. Ordered to take out the democratically elected National Front government led by Muhammed Mosaddeq and restore the Shah of Iran, Roosevelt spread the cash and waited for it to do its magic...
(76): The Tudeh Party (heir to the Communist Party founded in 1920) had a cadre of 25,000, while its union federation boasted a membership of 335,000. The influence of the Tudeh angered the US establishment, which offered the National Front leader a choice: either crush the Communists, take US aid and remain in power, or else fall under Soviet-Communist influence. On May 2, 1953, Mosaddeq revealed the shallowness fo his class, whose investment in nationalism and national sovereignty only went as far as it would guarantee its rule and luxury; he wrote a letter to President Dwight D. Eisenhower, in which he cowered, "Please accept, Mr. President, the assurances of my highest consideration." Afraid of the Soviets, Mosaddeq crushed the Tudeh Party, thereby destroying the most organized defenders of Iranian sovereignty, and then fell before a coup engineered by the CIA's representative and a far more reliable US ally, the Shah.
(76-77): The Shah exiled tens of thousands of National Party members and Communists, and killed thousands of both... The Tudeh was paralyzed by the coup. The USSR paid it little heed, preferring to make every concession to the Shah in hopes of pacifying a border state and gaining access to the oil--all this despite the close relationship between the United States and the Shah.
(80): Although Iran had never been formerly colonized, it belonged with the hungry.... English oil firms... had dominated Iran's oil fields since 1901... Iran's government paid for the infrastructure to remove the oil, and earned a pittance from the oil company cartel. Not for nothing did Mossadeq's struggle over oil earn him the affection of the masses.
(97): Whereas when the Bolshevik Revolution took Russia out of World War I in an anti-imperialist flourish (the new government revealed the hidden imperialist correspondence of the European regimes), the Soviet state under Stalin had a much more cautious approach toward the new postcolonial states. The Soviet Union had been battered by the war... The USSR could neither afford to rest easy nor antagonize the hoards that gathered on its borders. In this vise, the USSR's principle leadership offered two contrary theses: that any entente between the United States and the USSR was "perfectly feasible" (as Stalin put it in December 1946), and that the United States and its allies were "rapacious imperialists" who were on the verge of defeat by the tide of socialism... Zhadanov's two-camp theory privileged the national Communist parties at the same time as the USSR's commissars made arrangements with bourgeois forces within the postcolonial states at the expense of the local Communists. This vacillation manifested itself in the ambiguity over the Soviet position regarding the Third World and peaceful co-existence. After the demise of Stalin, the new leadership led by Khruschchev and Bulganin adopted peaceful co-existence and pledged their support to the bourgeois nationalist regimes (often against the domestic Communists). The unclear situation suggested that the USSR seemed keener to push its own national interests than those of the national Communist parties to which it pledged verbal fealty.
(98): Secretary of State Dulles traveled to both Egypt and India in 1953. In South Asia, Dulles found Nehru "utterly impractical," whereas he enjoyed the "martial and religious qualities of the Pakistanis."
(100-101): In 1961, the other big three welcomed the representatives of twenty-two states from Africa, Asia, Latin America and Europe to Belgrade to create NAM, an institution that gre in stregnth from conference to conference, within and without the UN, and lumbers on today. The nature of the regimes that participated in the NAM meeting reflects its limitations. With their pageantry came the monarchs... This was a mixed crowd, and its sheer political diversity made an ideologically coherent and unified stance by NAM almost impossible. NAM would remain a political platform, a sub-United Nations, but it would only be able to act in concert on two broad issues: to champion global nuclear disarmament, and to democratize the United Nations.
(103): Cabral acknowledged that while PAIGC's struggle is also the struggle "for peaceful co-existence and for peace," he made it clear that "to co-exist one must first of all exist, so the imperialists and the colonists must be forced to retreat so that we can make a contribution to human civilization, based on the work, the dynamic personality and the culture of our peoples."
(104): In early December 1964, Che Guevara took this message to the floor of the UN General Assembly: "We should like to wake up this Assembly. Imperialism wants to convert this meeting into a useless oratorical tournament instead of solving the serious problems of the world. We must prevent them from doing this... As Marxists we maintain that peaceful co-existence does not include co-existence between exploiters and exploited."
(106): Between 1900 and 1933, the US military intervened to scuttle the national hopes of the people of Cuba (four times), the Dominican Republic (four times, including an eight-year occupation), Guatemala (once), Haiti (twice, including a nineteen-year occupation), Honduras (seven times), Nicaragua (twice), and Panama (six times).
(106): For Castro, part of the problem lay in the new doctrine that had been developed by the Third World project and adopted by the Soviets, the "strange concept of peaceful co-existence for some and war for others." Castro expected NAM and the USSR to do something concrete for Vietnam as well as other colonized people.
(108): In a letter to the Tricontinental, Che asked the hardest question of all: What is the value of solidarity when the imperialist guns were not challenged? "The solidarity of the progressive forces of the world towards the people of Vietnam today," he wrote, "is similar to the bitter irony of the plebians coaxing on the gladiators in the Roman arena. It is not a matter of wishing success to the victims of aggression, but of sharing his fate; one must accompany him to his death or to victory."
(110): Nehru and Sukarno had been ruthless against the Communist movements in their own countries, and they were incapable of a genuine challenge to finance capital. Like Nehru and Sukarno, Nkrumah of Ghana enjoyed the momentum of a successful freedom struggle and disliked any opposition. His Preventive Detention Act and use of the state apparatus against the rail workers in 1961 led inexorably to the creation of a one-party state in 1964 with Nkrumah as Osagyefo or Redeemer... Nkrumah's populatrity plummeted along with world cocoa prices, and in 1966, the CIA encouraged his opposition to conduct a coup against him.
(120): The FLN's gambit succeeded politically, even if the military cost was enormous. During the course of the war, from 1954 to 1962, between three hundred thousand and a million people lost their lives. It was a heavy price to pay. All the factions within Algeria, even the liberals, lined up behind the FLN.
(123): The 1963 Constitution of Algeria abolished all political parties except the FLN, and elevated the president of the FLN to the sole formulator of state policy. The energy of the Algerian Revolution would now be concentrated in the body of the president, who for the moment was Ben Bella. The 1964 Charter of Algiers defended the abolishment of parties other than FLN. "The multiparty system allows all particular interests to organize into different pressure groups. It frustrated the general interest, that is, the workers' interest," and therefore, in the workers' name, there should only be one party, the "vanguard party."
(125): The seven-and-a-half year war and the long period of colonial rule (1830-1962) had drained Algerian society. The FLN inherited the desiccated earth... Algeria's wealth had been siphoned off by the First World... Few factories, few schools, and few hospitals--the emblems of modernity had been built around the colonial maintenance of "tradition."...Of the twelve million Algerians, four and a half million lived in poverty, and two million had been locked in concentration camps, from which they went to abandoned herds and overgrown lands.
(127): National liberation parties that came to power without a well-honed class analysis opened themselves up to pressure from the newly confident mercantile and industrial classes, whose own position was greatly enhanced by the national liberation agenda for the domestic creation of industry, for the creation of a national economy. Although the national liberation party remained largely beholden to the bureaucratic-managerial-intellectual (sometimes military) elite, it did build close ties to the industrial class. Import-substitution type projects opened some space for institutional reform and social-development projects, but in most cases they simply protected domestic industrialists who had no long-term commitment to the Third World agenda.
(128): [IMPORTANT] Algeria followed a tradition already established and defended in large parts of postcolonial Africa, whether ruled by governments of the "Right" or the "Left"--in Guinea (1958), Congo (1960), Ivory Coast (1961), Tanzania (1963), Malawi (1963), and Kenya (1964). The defenders of the "one-party staet" argued that rival parties "have generally little interest for the great majority of the people."...The one party vision is one of fear of the people, fear that any devolution of power would lead to antinational activity... A state that acted bureaucratically on a population had a built-in tendency to rely on congealed, traditional sources of social power and control. Older forms of association returned to the fore, such as tribal and class loyalties. These power bases became indispensable for elections or the implementation of the state's development agenda. The national liberation state that came into being as the instrument of popular power now turned to the very agents who had often not supported it to enact its policies.
(129) [ATTEMPTS AT FIGHTING THE BUREAUCRACY] At the 1961 Second Congress of the Vietnam Workers' Party, Ho Chi Minh warned his party and nation about the tendency toward bureaucratization and commandism, for the bureaucratic attitude "shows in fondness for red tape, divorce from the masses of the people and reluctance to learn the experiences of the masses," while commandism did not allow the people to "work on their own initiative and own accord tand to use compulsion to do unexplained tasks." ... Che's lyrical esays on volunteerism and Communist morality come from and engendered the "work councils" that continue to be a feature of Cuban social life. Cabral's speeches on the duty of the Communist address the problem. Within a year of Guniea-Bissau's freedom from Portuguese rule, Cabral's government invited the renowned Brazilian educator Paolo Freire to visit the country, study its educational system, and provide assistance on a popular pedagogy for the creation of a nonbureaucratic society.
(132): By the late 1960s, Algeria had moved from an attempt to create a socialist state to a state capitalist one, with a parasitic bourgeoisie confident beside the strong arms of the military.
(136) : [BOLIVIA] The second reform came in 1953, when the MNR conducted farily extensive land redistribution on behalf of the landless labor, the campesinos. The 6 percent of the landowners who owned more than a thousand hectares, the hacendados, controlled 92 percent of the land, and they had not more than 1.5 percent of that land under cultivation... Despite the drawbacks of the revolution, Bolivia in the early 1950s was in the same sort of social ferment as Algeria a decade later. For a few years, Bolivia trod a path unfamiliar to most Third World states... From 1952 until the late 1950s, the MNR attempted to dismantle the military and hand over the power of the gun to the militias of the campesions and the tin miners, and the MNR's own grupos de honor. Its 1951 experience with the military led the MNR to shut down the Colegio Militar, dismiss a fifth of the officer corps, drastically cut the expenditure for the army from 22 percent in 1952 to 7 percent in 1957), and even consider the complete elimination of the armed forces...
(137-138) [ALAS]... the MNR had by the late 1950s already begun to build up the military and had ceaed to rely on its central allies for popular support... [Coup in 1964].
(138): The events in Bolivia replicated those elsewhere in the darker nations, from its neighbor Paraguay's 1954 coup led by General Alfredo Stroessner to the distant Thailand's 1957 coup led by Army Chief Sarit Tanarat. From the end of World War II to the early 1970s, one scholar estimates that at the most two hundred coups took place in Africa and Asia as well as Central and South America.
(138-139): [THE ARMY] Where every other instituion had been batttered by colonialism and neocolonialism, the military stood out as efficient and disciplined. The bureaucracy is often poorly trained and prone to corruption, whereas the political parties are frequently, even in South America, better at the struggle for freedom or the creation of manifestos than governance. In this situation, and with the general demobilization and disarmament of the population, the military is an obvious actor for social order. Fanon has a prescrption to prevent the golpe. "The only way to avoid this menace," he writes, "is to educate the army politically, in other words to nationalize it."... Indeed, Third World states that did not disarm the population, and that created citizens' militias and retained the population in a general political mobilization, did not succumb to coups or easy intervention by imperialism. The classic case is revolutionary Cuba.
(140): Most new nations that demobilized and disarmed their populations fell prey to military intervention, often driven by imperialist pressure.... The US-engineered coup in Iran (1953) is an early example... Whereas the evidence of US involvement is unclear in most of the coups in the Third World, the footprint of the CIA and the US military intelligence has been clearly documented in the coups in the Dominican Republic (1963), Ecuador (1963), Brazil (1964), Indonesia (1965), Congo (1965), Greece (1967), Cambodia (1970), Bolivia again (1971), and most famously Chile (1973). This is the short, uncontroversial list.
(146-148): I want to distinguish betwen at least two kinds of coups: the generals' coups and the colonel's coups. All coups are structurally reactionary, because they adorn the military with the solitary role for social change... Some coups are, however, more reactionary than others. Coups that are conducted in countries that have had either a national liberation struggle... or an electoral victory against the oligarchs tend to be reacitonary. The military frequently takes power to reverse the gains... The generals often lead these goups... To the rank and file, the generals say that the revolutionary government wanted to cut back on the role of the military in social life... The aggreived military brass in Algeria (1965), Dahomey (1965), Ghana (1966), Togo (1967), Uganda (1971), and Chad (1975) [and Pakistan (1958, 1977), Chile (1973)]. (...) For states where there is no national liberation movement, and where there is no hope for social reform, the coup d'etat is often the means for aggrieved social classes within the military to asser the rule not so much of the military as for their social class. These are the colonels' coups.... The modular form of this coup is the Egyptian overthrow of the monarchy in 1952... The latest variant of the colonels' coup comes from Colonel Hugo Chavez of Venezuela in 1999. The colonels' coups succumbed to their authoritarian roots in military culture... Even if the colonels' cop comes with tremendous promise, it can only momentarily deliver the administrative apparatus to energetic officers.... The military in power, as Frist shows, regardless of its motivations, freezes the political process and cuts down the ability of social movements to move the historical process in a progressive direction. Nothing good comes from a military dictatorship.
(152): Unhappy with the nationalist negotiations with the Dutch, the Indonesian Communist Party (PKI) urged a popular uprising agaisnt both the Dutch and the newly emergent bourgeoisie in Indonesia... The army killed many of the PKI's leaders, jailed about 36,000 people, and crushed the party into relative insignificance. The "adventure of 1948" ended swiftly. President Sukarno's rise to power came with the blood of the Communists on his hands. His fall, in 1965, would be accompanied by the murder of one or perhaps two million Communists and sympathizers. [in 1965... the party commanded the oloyalty of more than 20 million Indonesians, in a country of 110 million]
(153): The PKI followed a well-hewed analysis among Marxists across the Third World: that a relatively nonindustrial society cannot have a proletarian revolution, and so the Communist Party must work alongside progressive sections of the bourgeoisie to create democratic capitalism. When the conditions of industry are more developed, the Communists can come to state power.
(62): After centuries of imperialism, the new nations had been left with economies that relied on the sale of raw material and the import of finished goods. This fundamental imbalance meant that countries like Argentina had to export vast amounts of raw materials at relatively low prices, whereas their import bills would be inflated with the high prices commanded by industrially manufactured goods.
(62-63): Until the early decades of the twentieth century, the dominant classes in Argentina had no brief for nation building. The oligarchs... ran the country with an iron fist and held their own wealth in European banks (which mean that they preferred fiscal policies that favored Europe's currencies against Argentina's economic strength). This detachment of the elite fueled the growth of a socialist movement... Argentina's industrialization grew in the breach, when European and US capital neglected the region for the period between the Depression of the 1920s and the wars of the 1940s... British capital owned most of Argentina's railroads and the Swiss, the United States, and the British owned almost half of its industries. The authoritarian populist Juan Peron bought the railroads from the British...
(63-64): A combination of technological advantages, unionization, and the vagaries of the prices of primary products meant that the core enjoyed a sizable gain in the "terms of trade."
(66): Why is India poor, asked Dadabhai Naoroji? It is not the pitiless operation of economic laws, but it is the thoughtless and pitiless action of the British policy; it is the pitiless eating of India's substance in India, and the further pitiless drain to England; in short, it is the pitiless perversion of economic laws by the sad bleeding to which India is subjected, that is destroying India." The Third World bled to make Europe grow. Modernization theory avoided this, and rather sought to "Protestantize" the cultures of the world to seed capitalist culture.
(66): Colonialism ravaged the world, and left more than half of it bereft of capital and with a surfeit of poverty. In 1500, the average per capita income in Europe ran only three times more than that in Africa and Asia, whereas in 1960, it was ten times greater.
(67): Prebisch rejected the theory of comparative advantage, because he demonstrated that each region of the world could enjoy the fruits of modernity as much as the others. [T]rade is crucial because some regions have smaller markets than otehrs, and raw materials and agricultural lands are not evenly distributed along national lines. But the basis of trade had to be altered. It could not be premised on the idea that some states are naturally good at being harvesters of low-value raw materials and others are naturally proficient at being producers of high-value-added finished products. The theory of comparative advantage, Prebisch claimed, stifles genuine economic development.
(68): The contempt of the First World's economists was palpable. John Maynard Keynes, for instance, complained to the English government about the invitations being sent out to the darker nations for the Bretton Woods Conference. Those that had been invited from Colombia to Venezuela, from Liberia to the Philippines, he noted, "clearly have nothing to contribute and will merely encumber the ground." For Keynes, this is "the most monstrous monkey-house assembled for years." Only technocrats from the advanced industrial states should be allowed to formulate the rules, because otherwise thsoe from the raw material states would begin to make unbearable demands.
(71): The US president of the World Bank, Eugene Black, quite forthrightly remarked, "Our foreign aid programs constitute a distinct benefit to American business. The three major benefits are (1) foreign aid provides a substantial and immediate market for United States goods and services, (2) foreign aid stimulates the development of new overseas markets for United States' companies, (3) foreign aid orients national economies toward a free enterprise system in which United States' firms can prosper.
(73): [BARAN'S CRITIQUE OF ISI] Paul Baran published The Political Economy of Growth in which he demonstrated the futility of foreign aid and the import-substitution industrialization strategy... While Baran might have overstated his thesis and the role of monopoly capitalism within the darker nations, his critique on the reliance on the growth strategy was on point. The aid from outside (whether capitalist or socialist) purchased time for the dominant elites, who used that money to prevent necessary social transformation. A more substantial way for development would be the destruction of feudal social relations, band by the socialization of production. These parasitic elites acceded to the Prebisch logic in order to benefit their own class interests, rather than move their societies to socialism. The cominant classes in each of these societies purchased third-rate, out-of-date plants and machinery from the advanced industrial states, and paid top dollar for them... Prebisch recognized this major limitation in the Third World order: "We thought that an acceleration of the rate of growth would solve all problems. This was our great mistake." What was needed alongside growth were "changes in the social structure," indeed "a complete social transformation."
(74): It had already become sufficient to be critical of the First World alone, which became a shield that protected the national bourgeoisie from criticism for its own lack of imagination and self-sacrifice. In other words, development theory and public policy emphasized economic growth as an end in itself without a built-in consideration for equity.
(75): One million dollars. That's all it took in 1953 for the CIA to overthrow a nationalist government. Langley's man in Tehran was Kermit "Kim" Roosevelt, the grandson of Teddy Roosevelt. Ordered to take out the democratically elected National Front government led by Muhammed Mosaddeq and restore the Shah of Iran, Roosevelt spread the cash and waited for it to do its magic...
(76): The Tudeh Party (heir to the Communist Party founded in 1920) had a cadre of 25,000, while its union federation boasted a membership of 335,000. The influence of the Tudeh angered the US establishment, which offered the National Front leader a choice: either crush the Communists, take US aid and remain in power, or else fall under Soviet-Communist influence. On May 2, 1953, Mosaddeq revealed the shallowness fo his class, whose investment in nationalism and national sovereignty only went as far as it would guarantee its rule and luxury; he wrote a letter to President Dwight D. Eisenhower, in which he cowered, "Please accept, Mr. President, the assurances of my highest consideration." Afraid of the Soviets, Mosaddeq crushed the Tudeh Party, thereby destroying the most organized defenders of Iranian sovereignty, and then fell before a coup engineered by the CIA's representative and a far more reliable US ally, the Shah.
(76-77): The Shah exiled tens of thousands of National Party members and Communists, and killed thousands of both... The Tudeh was paralyzed by the coup. The USSR paid it little heed, preferring to make every concession to the Shah in hopes of pacifying a border state and gaining access to the oil--all this despite the close relationship between the United States and the Shah.
(80): Although Iran had never been formerly colonized, it belonged with the hungry.... English oil firms... had dominated Iran's oil fields since 1901... Iran's government paid for the infrastructure to remove the oil, and earned a pittance from the oil company cartel. Not for nothing did Mossadeq's struggle over oil earn him the affection of the masses.
(97): Whereas when the Bolshevik Revolution took Russia out of World War I in an anti-imperialist flourish (the new government revealed the hidden imperialist correspondence of the European regimes), the Soviet state under Stalin had a much more cautious approach toward the new postcolonial states. The Soviet Union had been battered by the war... The USSR could neither afford to rest easy nor antagonize the hoards that gathered on its borders. In this vise, the USSR's principle leadership offered two contrary theses: that any entente between the United States and the USSR was "perfectly feasible" (as Stalin put it in December 1946), and that the United States and its allies were "rapacious imperialists" who were on the verge of defeat by the tide of socialism... Zhadanov's two-camp theory privileged the national Communist parties at the same time as the USSR's commissars made arrangements with bourgeois forces within the postcolonial states at the expense of the local Communists. This vacillation manifested itself in the ambiguity over the Soviet position regarding the Third World and peaceful co-existence. After the demise of Stalin, the new leadership led by Khruschchev and Bulganin adopted peaceful co-existence and pledged their support to the bourgeois nationalist regimes (often against the domestic Communists). The unclear situation suggested that the USSR seemed keener to push its own national interests than those of the national Communist parties to which it pledged verbal fealty.
(98): Secretary of State Dulles traveled to both Egypt and India in 1953. In South Asia, Dulles found Nehru "utterly impractical," whereas he enjoyed the "martial and religious qualities of the Pakistanis."
(100-101): In 1961, the other big three welcomed the representatives of twenty-two states from Africa, Asia, Latin America and Europe to Belgrade to create NAM, an institution that gre in stregnth from conference to conference, within and without the UN, and lumbers on today. The nature of the regimes that participated in the NAM meeting reflects its limitations. With their pageantry came the monarchs... This was a mixed crowd, and its sheer political diversity made an ideologically coherent and unified stance by NAM almost impossible. NAM would remain a political platform, a sub-United Nations, but it would only be able to act in concert on two broad issues: to champion global nuclear disarmament, and to democratize the United Nations.
(103): Cabral acknowledged that while PAIGC's struggle is also the struggle "for peaceful co-existence and for peace," he made it clear that "to co-exist one must first of all exist, so the imperialists and the colonists must be forced to retreat so that we can make a contribution to human civilization, based on the work, the dynamic personality and the culture of our peoples."
(104): In early December 1964, Che Guevara took this message to the floor of the UN General Assembly: "We should like to wake up this Assembly. Imperialism wants to convert this meeting into a useless oratorical tournament instead of solving the serious problems of the world. We must prevent them from doing this... As Marxists we maintain that peaceful co-existence does not include co-existence between exploiters and exploited."
(106): Between 1900 and 1933, the US military intervened to scuttle the national hopes of the people of Cuba (four times), the Dominican Republic (four times, including an eight-year occupation), Guatemala (once), Haiti (twice, including a nineteen-year occupation), Honduras (seven times), Nicaragua (twice), and Panama (six times).
(106): For Castro, part of the problem lay in the new doctrine that had been developed by the Third World project and adopted by the Soviets, the "strange concept of peaceful co-existence for some and war for others." Castro expected NAM and the USSR to do something concrete for Vietnam as well as other colonized people.
(108): In a letter to the Tricontinental, Che asked the hardest question of all: What is the value of solidarity when the imperialist guns were not challenged? "The solidarity of the progressive forces of the world towards the people of Vietnam today," he wrote, "is similar to the bitter irony of the plebians coaxing on the gladiators in the Roman arena. It is not a matter of wishing success to the victims of aggression, but of sharing his fate; one must accompany him to his death or to victory."
(110): Nehru and Sukarno had been ruthless against the Communist movements in their own countries, and they were incapable of a genuine challenge to finance capital. Like Nehru and Sukarno, Nkrumah of Ghana enjoyed the momentum of a successful freedom struggle and disliked any opposition. His Preventive Detention Act and use of the state apparatus against the rail workers in 1961 led inexorably to the creation of a one-party state in 1964 with Nkrumah as Osagyefo or Redeemer... Nkrumah's populatrity plummeted along with world cocoa prices, and in 1966, the CIA encouraged his opposition to conduct a coup against him.
(120): The FLN's gambit succeeded politically, even if the military cost was enormous. During the course of the war, from 1954 to 1962, between three hundred thousand and a million people lost their lives. It was a heavy price to pay. All the factions within Algeria, even the liberals, lined up behind the FLN.
(123): The 1963 Constitution of Algeria abolished all political parties except the FLN, and elevated the president of the FLN to the sole formulator of state policy. The energy of the Algerian Revolution would now be concentrated in the body of the president, who for the moment was Ben Bella. The 1964 Charter of Algiers defended the abolishment of parties other than FLN. "The multiparty system allows all particular interests to organize into different pressure groups. It frustrated the general interest, that is, the workers' interest," and therefore, in the workers' name, there should only be one party, the "vanguard party."
(125): The seven-and-a-half year war and the long period of colonial rule (1830-1962) had drained Algerian society. The FLN inherited the desiccated earth... Algeria's wealth had been siphoned off by the First World... Few factories, few schools, and few hospitals--the emblems of modernity had been built around the colonial maintenance of "tradition."...Of the twelve million Algerians, four and a half million lived in poverty, and two million had been locked in concentration camps, from which they went to abandoned herds and overgrown lands.
(127): National liberation parties that came to power without a well-honed class analysis opened themselves up to pressure from the newly confident mercantile and industrial classes, whose own position was greatly enhanced by the national liberation agenda for the domestic creation of industry, for the creation of a national economy. Although the national liberation party remained largely beholden to the bureaucratic-managerial-intellectual (sometimes military) elite, it did build close ties to the industrial class. Import-substitution type projects opened some space for institutional reform and social-development projects, but in most cases they simply protected domestic industrialists who had no long-term commitment to the Third World agenda.
(128): [IMPORTANT] Algeria followed a tradition already established and defended in large parts of postcolonial Africa, whether ruled by governments of the "Right" or the "Left"--in Guinea (1958), Congo (1960), Ivory Coast (1961), Tanzania (1963), Malawi (1963), and Kenya (1964). The defenders of the "one-party staet" argued that rival parties "have generally little interest for the great majority of the people."...The one party vision is one of fear of the people, fear that any devolution of power would lead to antinational activity... A state that acted bureaucratically on a population had a built-in tendency to rely on congealed, traditional sources of social power and control. Older forms of association returned to the fore, such as tribal and class loyalties. These power bases became indispensable for elections or the implementation of the state's development agenda. The national liberation state that came into being as the instrument of popular power now turned to the very agents who had often not supported it to enact its policies.
(129) [ATTEMPTS AT FIGHTING THE BUREAUCRACY] At the 1961 Second Congress of the Vietnam Workers' Party, Ho Chi Minh warned his party and nation about the tendency toward bureaucratization and commandism, for the bureaucratic attitude "shows in fondness for red tape, divorce from the masses of the people and reluctance to learn the experiences of the masses," while commandism did not allow the people to "work on their own initiative and own accord tand to use compulsion to do unexplained tasks." ... Che's lyrical esays on volunteerism and Communist morality come from and engendered the "work councils" that continue to be a feature of Cuban social life. Cabral's speeches on the duty of the Communist address the problem. Within a year of Guniea-Bissau's freedom from Portuguese rule, Cabral's government invited the renowned Brazilian educator Paolo Freire to visit the country, study its educational system, and provide assistance on a popular pedagogy for the creation of a nonbureaucratic society.
(132): By the late 1960s, Algeria had moved from an attempt to create a socialist state to a state capitalist one, with a parasitic bourgeoisie confident beside the strong arms of the military.
(136) : [BOLIVIA] The second reform came in 1953, when the MNR conducted farily extensive land redistribution on behalf of the landless labor, the campesinos. The 6 percent of the landowners who owned more than a thousand hectares, the hacendados, controlled 92 percent of the land, and they had not more than 1.5 percent of that land under cultivation... Despite the drawbacks of the revolution, Bolivia in the early 1950s was in the same sort of social ferment as Algeria a decade later. For a few years, Bolivia trod a path unfamiliar to most Third World states... From 1952 until the late 1950s, the MNR attempted to dismantle the military and hand over the power of the gun to the militias of the campesions and the tin miners, and the MNR's own grupos de honor. Its 1951 experience with the military led the MNR to shut down the Colegio Militar, dismiss a fifth of the officer corps, drastically cut the expenditure for the army from 22 percent in 1952 to 7 percent in 1957), and even consider the complete elimination of the armed forces...
(137-138) [ALAS]... the MNR had by the late 1950s already begun to build up the military and had ceaed to rely on its central allies for popular support... [Coup in 1964].
(138): The events in Bolivia replicated those elsewhere in the darker nations, from its neighbor Paraguay's 1954 coup led by General Alfredo Stroessner to the distant Thailand's 1957 coup led by Army Chief Sarit Tanarat. From the end of World War II to the early 1970s, one scholar estimates that at the most two hundred coups took place in Africa and Asia as well as Central and South America.
(138-139): [THE ARMY] Where every other instituion had been batttered by colonialism and neocolonialism, the military stood out as efficient and disciplined. The bureaucracy is often poorly trained and prone to corruption, whereas the political parties are frequently, even in South America, better at the struggle for freedom or the creation of manifestos than governance. In this situation, and with the general demobilization and disarmament of the population, the military is an obvious actor for social order. Fanon has a prescrption to prevent the golpe. "The only way to avoid this menace," he writes, "is to educate the army politically, in other words to nationalize it."... Indeed, Third World states that did not disarm the population, and that created citizens' militias and retained the population in a general political mobilization, did not succumb to coups or easy intervention by imperialism. The classic case is revolutionary Cuba.
(140): Most new nations that demobilized and disarmed their populations fell prey to military intervention, often driven by imperialist pressure.... The US-engineered coup in Iran (1953) is an early example... Whereas the evidence of US involvement is unclear in most of the coups in the Third World, the footprint of the CIA and the US military intelligence has been clearly documented in the coups in the Dominican Republic (1963), Ecuador (1963), Brazil (1964), Indonesia (1965), Congo (1965), Greece (1967), Cambodia (1970), Bolivia again (1971), and most famously Chile (1973). This is the short, uncontroversial list.
(146-148): I want to distinguish betwen at least two kinds of coups: the generals' coups and the colonel's coups. All coups are structurally reactionary, because they adorn the military with the solitary role for social change... Some coups are, however, more reactionary than others. Coups that are conducted in countries that have had either a national liberation struggle... or an electoral victory against the oligarchs tend to be reacitonary. The military frequently takes power to reverse the gains... The generals often lead these goups... To the rank and file, the generals say that the revolutionary government wanted to cut back on the role of the military in social life... The aggreived military brass in Algeria (1965), Dahomey (1965), Ghana (1966), Togo (1967), Uganda (1971), and Chad (1975) [and Pakistan (1958, 1977), Chile (1973)]. (...) For states where there is no national liberation movement, and where there is no hope for social reform, the coup d'etat is often the means for aggrieved social classes within the military to asser the rule not so much of the military as for their social class. These are the colonels' coups.... The modular form of this coup is the Egyptian overthrow of the monarchy in 1952... The latest variant of the colonels' coup comes from Colonel Hugo Chavez of Venezuela in 1999. The colonels' coups succumbed to their authoritarian roots in military culture... Even if the colonels' cop comes with tremendous promise, it can only momentarily deliver the administrative apparatus to energetic officers.... The military in power, as Frist shows, regardless of its motivations, freezes the political process and cuts down the ability of social movements to move the historical process in a progressive direction. Nothing good comes from a military dictatorship.
(152): Unhappy with the nationalist negotiations with the Dutch, the Indonesian Communist Party (PKI) urged a popular uprising agaisnt both the Dutch and the newly emergent bourgeoisie in Indonesia... The army killed many of the PKI's leaders, jailed about 36,000 people, and crushed the party into relative insignificance. The "adventure of 1948" ended swiftly. President Sukarno's rise to power came with the blood of the Communists on his hands. His fall, in 1965, would be accompanied by the murder of one or perhaps two million Communists and sympathizers. [in 1965... the party commanded the oloyalty of more than 20 million Indonesians, in a country of 110 million]
(153): The PKI followed a well-hewed analysis among Marxists across the Third World: that a relatively nonindustrial society cannot have a proletarian revolution, and so the Communist Party must work alongside progressive sections of the bourgeoisie to create democratic capitalism. When the conditions of industry are more developed, the Communists can come to state power.
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Saturday, June 28, 2008
Visiting Al-Amarah to boost the morale of troops fighting Shia rebels on Monday, Iraq's Prime Minister Nuri Al-Maliki vowed that forces loyal to the government would continue their offensive in the southern province until anti-government armed groups are uprooted. The onslaught is an extension of military operations that began in Basra in March to end rebel control of Iraq's second largest city.
(...) The answer seems to lie in oil. The two southern provinces sit on a lake of 150 billion barrels, i.e. 95 per cent of Iraq's oil reserves. The northern province provides Iraq with its only oil export outlet to the Mediterranean. With oil prices nudging $140 per barrel and the US economy on the verge of freefall, Washington seems to have decided that it cannot wait any longer to use Iraq's huge reserve to increase output and lower the prices. On 19 June, The New York Times reported that Shell, BP and Exxon Mobil, Total and Chevron, heirs to the infamous seven sisters cartel that dominated world energy production in the latter half of the 20th century, were close to signing deals with Iraq to develop its oil and gas fields. The report came after Baghdad said it is about to sign agreements with international oil firms to revamp Iraq's oil fields, ravaged by the war and sabotaged by armed groups. Under the deals, worth around $500 million, the five firms will help overhaul Iraq's oil fields to boost the current production by 600,000 barrels a day, an increase of nearly 20 per cent.
(...) The answer seems to lie in oil. The two southern provinces sit on a lake of 150 billion barrels, i.e. 95 per cent of Iraq's oil reserves. The northern province provides Iraq with its only oil export outlet to the Mediterranean. With oil prices nudging $140 per barrel and the US economy on the verge of freefall, Washington seems to have decided that it cannot wait any longer to use Iraq's huge reserve to increase output and lower the prices. On 19 June, The New York Times reported that Shell, BP and Exxon Mobil, Total and Chevron, heirs to the infamous seven sisters cartel that dominated world energy production in the latter half of the 20th century, were close to signing deals with Iraq to develop its oil and gas fields. The report came after Baghdad said it is about to sign agreements with international oil firms to revamp Iraq's oil fields, ravaged by the war and sabotaged by armed groups. Under the deals, worth around $500 million, the five firms will help overhaul Iraq's oil fields to boost the current production by 600,000 barrels a day, an increase of nearly 20 per cent.
end of the petroleum age:
Though the world possesses tens of thousands of operating fields, a mere 116 of them – each producing more than 100,000 barrels per day – together account for nearly one-half of total global output. Of these, all but a handful were discovered more than a quarter of a century ago, and most are showing signs of diminished capacity. Indeed, some of the world’s largest fields – including Ghawar in Saudi Arabia, Burgan in Kuwait, Cantarell in Mexico, and Samotlor in Russia – appear to be now in decline or about to become so. The decline of these giant fields matters greatly. Compensating for their lost output will take increased yield at thousands of smaller fields, and there is no evidence that this is even remotely possible.
(...) We could live with the decline of these great reservoirs if we had some confidence that new reserves were being discovered all the time to replace all those now reaching the end of their productive life. But this is not the case. Despite a sharp increase in spending on exploration and development, the rate of new reserve discovery has been falling steadily for the past 30 years. According to the U.S. Army Corps of Engineers, the last decade in which new discoveries exceeded the rate of extraction from existing fields was the 1980s. Since then we have been consuming more oil than we have been finding – a pattern that can only result, eventually, in the complete exhaustion of the world’s known petroleum reserves.
(...) But more and more analysts are coming to the conclusion that the output of conventional (i.e., liquid) petroleum will peak at about 95 million barrels per day in the 2010-2012 time-frame and then begin an irreversible decline. The addition of a few million added barrels from Kashagan or Tupi will not alter this trend.
(...) Consider: In 2030, according to the U.S. Department of Energy, world “liquids” demand is expected to reach 117.6 million barrels per day. Of this amount, unconventional fuels – synthetic liquids derived from tar sands, shale rock, and biofuels – may provide a total of 10.5 million barrels. That leaves 107.1 million to be supplied by conventional petroleum. But what if global oil output has fallen to 60-70% of that amount by 2030, as projected by many analysts? Under those circumstances, no amount of oil from Alaska or the outer continental shelf will be able to save this country (or the rest of the world) from a catastrophic energy crisis.
Though the world possesses tens of thousands of operating fields, a mere 116 of them – each producing more than 100,000 barrels per day – together account for nearly one-half of total global output. Of these, all but a handful were discovered more than a quarter of a century ago, and most are showing signs of diminished capacity. Indeed, some of the world’s largest fields – including Ghawar in Saudi Arabia, Burgan in Kuwait, Cantarell in Mexico, and Samotlor in Russia – appear to be now in decline or about to become so. The decline of these giant fields matters greatly. Compensating for their lost output will take increased yield at thousands of smaller fields, and there is no evidence that this is even remotely possible.
(...) We could live with the decline of these great reservoirs if we had some confidence that new reserves were being discovered all the time to replace all those now reaching the end of their productive life. But this is not the case. Despite a sharp increase in spending on exploration and development, the rate of new reserve discovery has been falling steadily for the past 30 years. According to the U.S. Army Corps of Engineers, the last decade in which new discoveries exceeded the rate of extraction from existing fields was the 1980s. Since then we have been consuming more oil than we have been finding – a pattern that can only result, eventually, in the complete exhaustion of the world’s known petroleum reserves.
(...) But more and more analysts are coming to the conclusion that the output of conventional (i.e., liquid) petroleum will peak at about 95 million barrels per day in the 2010-2012 time-frame and then begin an irreversible decline. The addition of a few million added barrels from Kashagan or Tupi will not alter this trend.
(...) Consider: In 2030, according to the U.S. Department of Energy, world “liquids” demand is expected to reach 117.6 million barrels per day. Of this amount, unconventional fuels – synthetic liquids derived from tar sands, shale rock, and biofuels – may provide a total of 10.5 million barrels. That leaves 107.1 million to be supplied by conventional petroleum. But what if global oil output has fallen to 60-70% of that amount by 2030, as projected by many analysts? Under those circumstances, no amount of oil from Alaska or the outer continental shelf will be able to save this country (or the rest of the world) from a catastrophic energy crisis.
Tuesday, June 24, 2008
they've got the world by the belly:
As the Wall Street Journal (April 30, 2008) notes: “At a time when parts of the world are facing food riots, Big Agriculture is dealing with a different sort of challenge: huge profits.” The WSJ points to the grain-processing giant Archer-Daniels-Midland Co., which saw a 42 per cent leap in its fiscal third quarter profits. “Including a sevenfold increase in net income in its unit that stores, transports and trades grains such as wheat and corn, as well as soybeans.”
(...) “Some observers think financial speculation has helped push up prices as wealthy investors in the past year have flooded the agriculture commodity markets in search of better returns.” So much so that “The Commodity Futures Trading Commission last week held a hearing in Washington to examine the role index funds and other speculators are playing in driving up grain prices.” The WSJ cites research showing that total index fund investment in corn, soybean, wheat, cattle and hogs has risen by 37 billion dollars (which is well over double India’s farm loan waiver for millions of farmers) since 2006.
(...) But you cannot live without food and water. The latter “commodity” is the focus of the biggest thrust of some huge multinational companies. And we are well into the process of privatising water in India (for them) in a process that promises chaos, misery and conflict on a scale we cannot begin to grasp at this point.
(...) Across the globe, the entire chain of resources and inputs is now getting cornered by corporations. Farm land, water, fertilizer, seed, pesticide and many more. Grab these together and you’ve got the world by its belly. The giant companies are now putting out papers on how they will solve the world’s food problem. Never mind they are at the heart of it.
(...) Meanwhile, making chemical fertilizer requires large use of fossil fuels. So rising oil prices further spur the fertilizer crisis. The rip-off by the top corporations in that sector has been so great that even the United States Senate saw moves to impose a windfall profits tax on oil companies. (In India, the government responded to such calls by transferring the burden to the people and asking for “patience on the inflationary trend.”) Of course, it was scotched in the Senate, too.
(...) For well over a decade now, we have invested less and less in agriculture. Following the World Bank-IMF menu, we discouraged food crop and focused on cash crop and sang the hymns of export-led growth. Mindless de-regulation saw corporate control grip more sectors of agriculture. Seed, fertilizer, markets, you name it. We reduced our agricultural universities to labs for private corporations. We stepped up our use of chemical fertilizers and pesticides. Millions of farmers were shifted to a much higher-cost economy where input costs are crippling. A (non-organic) farmer in 1991 could cultivate an acre of cotton in Vidharbha for Rs. 2,500. [Just over $60.] Today that would cost him or her Rs. 13,000 or more, given the “miracles” of chemicals, pesticides and Bt.
(...) And then we withdrew credit. Even if the fertilizer comes through this season, countless farmers in the post-loan waiver world find themselves without fresh credit. “We’re not mad,” say bank managers in crisis regions. “The farmer has no new income. Nor better prices. How will someone who could not repay Rs. 10,000 repay thrice that sum?” So who do farmers seeking credit turn to? The very input dealers who are emerging the major source of informal credit in the countryside. And who are implicated in the black marketing of vital inputs in every crisis.
As the Wall Street Journal (April 30, 2008) notes: “At a time when parts of the world are facing food riots, Big Agriculture is dealing with a different sort of challenge: huge profits.” The WSJ points to the grain-processing giant Archer-Daniels-Midland Co., which saw a 42 per cent leap in its fiscal third quarter profits. “Including a sevenfold increase in net income in its unit that stores, transports and trades grains such as wheat and corn, as well as soybeans.”
(...) “Some observers think financial speculation has helped push up prices as wealthy investors in the past year have flooded the agriculture commodity markets in search of better returns.” So much so that “The Commodity Futures Trading Commission last week held a hearing in Washington to examine the role index funds and other speculators are playing in driving up grain prices.” The WSJ cites research showing that total index fund investment in corn, soybean, wheat, cattle and hogs has risen by 37 billion dollars (which is well over double India’s farm loan waiver for millions of farmers) since 2006.
(...) But you cannot live without food and water. The latter “commodity” is the focus of the biggest thrust of some huge multinational companies. And we are well into the process of privatising water in India (for them) in a process that promises chaos, misery and conflict on a scale we cannot begin to grasp at this point.
(...) Across the globe, the entire chain of resources and inputs is now getting cornered by corporations. Farm land, water, fertilizer, seed, pesticide and many more. Grab these together and you’ve got the world by its belly. The giant companies are now putting out papers on how they will solve the world’s food problem. Never mind they are at the heart of it.
(...) Meanwhile, making chemical fertilizer requires large use of fossil fuels. So rising oil prices further spur the fertilizer crisis. The rip-off by the top corporations in that sector has been so great that even the United States Senate saw moves to impose a windfall profits tax on oil companies. (In India, the government responded to such calls by transferring the burden to the people and asking for “patience on the inflationary trend.”) Of course, it was scotched in the Senate, too.
(...) For well over a decade now, we have invested less and less in agriculture. Following the World Bank-IMF menu, we discouraged food crop and focused on cash crop and sang the hymns of export-led growth. Mindless de-regulation saw corporate control grip more sectors of agriculture. Seed, fertilizer, markets, you name it. We reduced our agricultural universities to labs for private corporations. We stepped up our use of chemical fertilizers and pesticides. Millions of farmers were shifted to a much higher-cost economy where input costs are crippling. A (non-organic) farmer in 1991 could cultivate an acre of cotton in Vidharbha for Rs. 2,500. [Just over $60.] Today that would cost him or her Rs. 13,000 or more, given the “miracles” of chemicals, pesticides and Bt.
(...) And then we withdrew credit. Even if the fertilizer comes through this season, countless farmers in the post-loan waiver world find themselves without fresh credit. “We’re not mad,” say bank managers in crisis regions. “The farmer has no new income. Nor better prices. How will someone who could not repay Rs. 10,000 repay thrice that sum?” So who do farmers seeking credit turn to? The very input dealers who are emerging the major source of informal credit in the countryside. And who are implicated in the black marketing of vital inputs in every crisis.
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Friday, May 30, 2008
what's really driving the high price of oil?
Last week the price of crude oil reached about $130 a barrel after spiking to $140 briefly. The immediate cause? Guesses by oil man T. Boone Pickens and Goldman Sachs that the price could go to $150 and $200 a barrel respectivly in the near future. They were referring to what can be called the hoopla pricing party on the New York Mercantile Exchange. (NYMEX)
(...) Oil was at $50 a barrel in January 2007, then $75 a barrel in August 2007. Now at $130 or so a barrel, it is clear that oil pricing is speculative activity, having very little to do with physical supply and demand. An essential product—petroleum—is set by speculators operating on rumor, greed, and fear of wild predictions.
(...) Over the time since early 2007, U.S. demand for petroleum has fallen by 1 percent and world demand has risen by 1.3 percent. Supplies of crude are so plentiful, according to the Wall Street Journal, “traders of physical crude oil say their market is suffering from too much supply, not too little.” Iran, for instance, is storing 25 million barrels of heavy, sour crude oil because, in the words of Hossein Kazempour Ardebili, Iran’s oil governor, “there are simply no buyers because the market has more than enough oil.”
(...) In an ironic twist, the major price determinant has moved from OPEC (having only 40% of the world production) and the oil companies to the speculators in the commodities markets. What goes on in the essentially unregulated New York Mercantile Exchange (NYMEX)—without Commodity Futures Trading Commission (CFTC) enforced margin requirements, and, unlike your personal purchases, untaxed—is now the place that leads to your skyrocketing gasoline bills. OPEC and the Big Oil companies reap the benefits and say that it’s not their doing, but that of the speculators. Gives new meaning to “passing the buck.”
(...) He cites “some industry experts, who profit greatly from the high price of crude, and have stated openly that the worldwide economic price of crude, absent speculators, would be around $50 to $60 per barrel.
Last week the price of crude oil reached about $130 a barrel after spiking to $140 briefly. The immediate cause? Guesses by oil man T. Boone Pickens and Goldman Sachs that the price could go to $150 and $200 a barrel respectivly in the near future. They were referring to what can be called the hoopla pricing party on the New York Mercantile Exchange. (NYMEX)
(...) Oil was at $50 a barrel in January 2007, then $75 a barrel in August 2007. Now at $130 or so a barrel, it is clear that oil pricing is speculative activity, having very little to do with physical supply and demand. An essential product—petroleum—is set by speculators operating on rumor, greed, and fear of wild predictions.
(...) Over the time since early 2007, U.S. demand for petroleum has fallen by 1 percent and world demand has risen by 1.3 percent. Supplies of crude are so plentiful, according to the Wall Street Journal, “traders of physical crude oil say their market is suffering from too much supply, not too little.” Iran, for instance, is storing 25 million barrels of heavy, sour crude oil because, in the words of Hossein Kazempour Ardebili, Iran’s oil governor, “there are simply no buyers because the market has more than enough oil.”
(...) In an ironic twist, the major price determinant has moved from OPEC (having only 40% of the world production) and the oil companies to the speculators in the commodities markets. What goes on in the essentially unregulated New York Mercantile Exchange (NYMEX)—without Commodity Futures Trading Commission (CFTC) enforced margin requirements, and, unlike your personal purchases, untaxed—is now the place that leads to your skyrocketing gasoline bills. OPEC and the Big Oil companies reap the benefits and say that it’s not their doing, but that of the speculators. Gives new meaning to “passing the buck.”
(...) He cites “some industry experts, who profit greatly from the high price of crude, and have stated openly that the worldwide economic price of crude, absent speculators, would be around $50 to $60 per barrel.
Saturday, May 24, 2008
obama's secret war profiteering:
More important than even the Democrats' declaring that oil company profits are undeserved, is their implicit understanding that the profits are the spoils of war.
And that's another reason to tax the oil industry's ill-gotten gain. Vietnam showed us that foreign wars don't end when the invader can no longer fight, but when the invasion is no longer profitable.
More important than even the Democrats' declaring that oil company profits are undeserved, is their implicit understanding that the profits are the spoils of war.
And that's another reason to tax the oil industry's ill-gotten gain. Vietnam showed us that foreign wars don't end when the invader can no longer fight, but when the invasion is no longer profitable.
Saturday, November 17, 2007
it's the oil:
Iraq has 115 billion barrels of known oil reserves. That is more than five times the total in the United States. And, because of its long isolation, it is the least explored of the world’s oil-rich nations. A mere two thousand wells have been drilled across the entire country; in Texas alone there are a million. It has been estimated, by the Council on Foreign Relations, that Iraq may have a further 220 billion barrels of undiscovered oil; another study puts the figure at 300 billion. If these estimates are anywhere close to the mark, US forces are now sitting on one quarter of the world’s oil resources. The value of Iraqi oil, largely light crude with low production costs, would be of the order of $30 trillion at today’s prices. For purposes of comparison, the projected total cost of the US invasion/occupation is around $1 trillion.
(...) The draft law that the US has written for the Iraqi congress would cede nearly all the oil to Western companies. The Iraq National Oil Company would retain control of 17 of Iraq’s 80 existing oilfields, leaving the rest – including all yet to be discovered oil – under foreign corporate control for 30 years.
(...) By establishing permanent military bases in Iraq. Five self-sufficient ‘super-bases’ are in various stages of completion. All are well away from the urban areas where most casualties have occurred. There has been precious little reporting on these bases in the American press, whose dwindling corps of correspondents in Iraq cannot move around freely because of the dangerous conditions.
(...) In February last year, the Washington Post reporter Thomas Ricks described one such facility, the Balad Air Base, forty miles north of Baghdad. A piece of (well-fortified) American suburbia in the middle of the Iraqi desert, Balad has fast-food joints, a miniature golf course, a football field, a cinema and distinct neighbourhoods – among them, ‘KBR-land’, named after the Halliburton subsidiary that has done most of the construction work at the base. Although few of the 20,000 American troops stationed there have ever had any contact with an Iraqi, the runway at the base is one of the world’s busiest. ‘We are behind only Heathrow right now,’ an air force commander told Ricks.
(...) As for the number of US troops permanently stationed in Iraq, the defence secretary, Robert Gates, told Congress at the end of September that ‘in his head’ he saw the long-term force as consisting of five combat brigades, a quarter of the current number, which, with support personnel, would mean 35,000 troops at the very minimum, probably accompanied by an equal number of mercenary contractors. (He may have been erring on the side of modesty, since the five super-bases can accommodate between ten and twenty thousand troops each.) These forces will occasionally leave their bases to tamp down civil skirmishes, at a declining cost in casualties. As a senior Bush administration official told the New York Times in June, the long-term bases ‘are all places we could fly in and out of without putting Americans on every street corner’. But their main day-to-day function will be to protect the oil infrastructure.'
(...) Among the winners: oil-services companies like Halliburton; the oil companies themselves (the profits will be unimaginable, and even Democrats can be bought); US voters, who will be guaranteed price stability at the gas pump (which sometimes seems to be all they care about); Europe and Japan, which will both benefit from Western control of such a large part of the world’s oil reserves, and whose leaders will therefore wink at the permanent occupation; and, oddly enough, Osama bin Laden, who will never again have to worry about US troops profaning the holy places of Mecca and Medina, since the stability of the House of Saud will no longer be paramount among American concerns. Among the losers is Russia, which will no longer be able to lord its own energy resources over Europe. Another big loser is Opec, and especially Saudi Arabia, whose power to keep oil prices high by enforcing production quotas will be seriously compromised.
(...) In the short term, Iran has done quite well out of the Iraq war. Iraq’s ruling Shia coalition is now dominated by a faction friendly to Tehran, and the US has willy-nilly armed and trained the most pro-Iranian elements in the Iraqi military. As for Iran’s nuclear programme, neither air strikes nor negotiations seem likely to derail it at the moment. But the Iranian regime is precarious. Unpopular mullahs hold onto power by financing internal security services and buying off elites with oil money, which accounts for 70 per cent of government revenues. If the price of oil were suddenly to drop to, say, $40 a barrel (from a current price just north of $80), the repressive regime in Tehran would lose its steady income. And that is an outcome the US could easily achieve by opening the Iraqi oil spigot for as long as necessary (perhaps taking down Venezuela’s oil-cocky Hugo Chávez into the bargain).
(...) And think of the United States vis-Ã -vis China. As a consequence of our trade deficit, around a trillion dollars’ worth of US denominated debt (including $400 billion in US Treasury bonds) is held by China. This gives Beijing enormous leverage over Washington: by offloading big chunks of US debt, China could bring the American economy to its knees. China’s own economy is, according to official figures, expanding at something like 10 per cent a year. Even if the actual figure is closer to 4 or 5 per cent, as some believe, China’s increasing heft poses a threat to US interests. (One fact: China is acquiring new submarines five times faster than the US.) And the main constraint on China’s growth is its access to energy – which, with the US in control of the biggest share of world oil, would largely be at Washington’s sufferance. Thus is the Chinese threat neutralised.
Iraq has 115 billion barrels of known oil reserves. That is more than five times the total in the United States. And, because of its long isolation, it is the least explored of the world’s oil-rich nations. A mere two thousand wells have been drilled across the entire country; in Texas alone there are a million. It has been estimated, by the Council on Foreign Relations, that Iraq may have a further 220 billion barrels of undiscovered oil; another study puts the figure at 300 billion. If these estimates are anywhere close to the mark, US forces are now sitting on one quarter of the world’s oil resources. The value of Iraqi oil, largely light crude with low production costs, would be of the order of $30 trillion at today’s prices. For purposes of comparison, the projected total cost of the US invasion/occupation is around $1 trillion.
(...) The draft law that the US has written for the Iraqi congress would cede nearly all the oil to Western companies. The Iraq National Oil Company would retain control of 17 of Iraq’s 80 existing oilfields, leaving the rest – including all yet to be discovered oil – under foreign corporate control for 30 years.
(...) By establishing permanent military bases in Iraq. Five self-sufficient ‘super-bases’ are in various stages of completion. All are well away from the urban areas where most casualties have occurred. There has been precious little reporting on these bases in the American press, whose dwindling corps of correspondents in Iraq cannot move around freely because of the dangerous conditions.
(...) In February last year, the Washington Post reporter Thomas Ricks described one such facility, the Balad Air Base, forty miles north of Baghdad. A piece of (well-fortified) American suburbia in the middle of the Iraqi desert, Balad has fast-food joints, a miniature golf course, a football field, a cinema and distinct neighbourhoods – among them, ‘KBR-land’, named after the Halliburton subsidiary that has done most of the construction work at the base. Although few of the 20,000 American troops stationed there have ever had any contact with an Iraqi, the runway at the base is one of the world’s busiest. ‘We are behind only Heathrow right now,’ an air force commander told Ricks.
(...) As for the number of US troops permanently stationed in Iraq, the defence secretary, Robert Gates, told Congress at the end of September that ‘in his head’ he saw the long-term force as consisting of five combat brigades, a quarter of the current number, which, with support personnel, would mean 35,000 troops at the very minimum, probably accompanied by an equal number of mercenary contractors. (He may have been erring on the side of modesty, since the five super-bases can accommodate between ten and twenty thousand troops each.) These forces will occasionally leave their bases to tamp down civil skirmishes, at a declining cost in casualties. As a senior Bush administration official told the New York Times in June, the long-term bases ‘are all places we could fly in and out of without putting Americans on every street corner’. But their main day-to-day function will be to protect the oil infrastructure.'
(...) Among the winners: oil-services companies like Halliburton; the oil companies themselves (the profits will be unimaginable, and even Democrats can be bought); US voters, who will be guaranteed price stability at the gas pump (which sometimes seems to be all they care about); Europe and Japan, which will both benefit from Western control of such a large part of the world’s oil reserves, and whose leaders will therefore wink at the permanent occupation; and, oddly enough, Osama bin Laden, who will never again have to worry about US troops profaning the holy places of Mecca and Medina, since the stability of the House of Saud will no longer be paramount among American concerns. Among the losers is Russia, which will no longer be able to lord its own energy resources over Europe. Another big loser is Opec, and especially Saudi Arabia, whose power to keep oil prices high by enforcing production quotas will be seriously compromised.
(...) In the short term, Iran has done quite well out of the Iraq war. Iraq’s ruling Shia coalition is now dominated by a faction friendly to Tehran, and the US has willy-nilly armed and trained the most pro-Iranian elements in the Iraqi military. As for Iran’s nuclear programme, neither air strikes nor negotiations seem likely to derail it at the moment. But the Iranian regime is precarious. Unpopular mullahs hold onto power by financing internal security services and buying off elites with oil money, which accounts for 70 per cent of government revenues. If the price of oil were suddenly to drop to, say, $40 a barrel (from a current price just north of $80), the repressive regime in Tehran would lose its steady income. And that is an outcome the US could easily achieve by opening the Iraqi oil spigot for as long as necessary (perhaps taking down Venezuela’s oil-cocky Hugo Chávez into the bargain).
(...) And think of the United States vis-Ã -vis China. As a consequence of our trade deficit, around a trillion dollars’ worth of US denominated debt (including $400 billion in US Treasury bonds) is held by China. This gives Beijing enormous leverage over Washington: by offloading big chunks of US debt, China could bring the American economy to its knees. China’s own economy is, according to official figures, expanding at something like 10 per cent a year. Even if the actual figure is closer to 4 or 5 per cent, as some believe, China’s increasing heft poses a threat to US interests. (One fact: China is acquiring new submarines five times faster than the US.) And the main constraint on China’s growth is its access to energy – which, with the US in control of the biggest share of world oil, would largely be at Washington’s sufferance. Thus is the Chinese threat neutralised.
Labels:
china,
iran,
iraq,
oil,
oil privatization,
saudi arabia,
US meddling
Thursday, August 23, 2007
why iraqis oppose u.s.-backed oil law:
Iraq has a long labor history. Union activists, banned and jailed under the British and their puppet monarchy, organized a labor movement that was the admiration of the Arab world when Iraq became independent after the revolution of 1958. When Saddam Hussein came to power, though, he drove its leaders underground, killing or imprisoning the ones he could catch.
(...) The al-Maliki government has seized all union funds and turned its back on a wave of assassinations of union leaders. After the June strike, Iraq's oil minister ordered oil industry officials to refuse to recognize or bargain with the oil worker unions. Iraq's oil industry was nationalized in the 1960s, like that of every other country in the Middle East. The Iraqi oil union became, and remains, the industry's most zealous guardian.
(...) The unions have vowed to strike if the law is implemented. At the occupation's end, the government in Baghdad will need control of the oil wealth to rebuild a devastated country. That gives Iraqis a big reason to fight to protect public ownership and control of the oil industry.
Iraq has a long labor history. Union activists, banned and jailed under the British and their puppet monarchy, organized a labor movement that was the admiration of the Arab world when Iraq became independent after the revolution of 1958. When Saddam Hussein came to power, though, he drove its leaders underground, killing or imprisoning the ones he could catch.
(...) The al-Maliki government has seized all union funds and turned its back on a wave of assassinations of union leaders. After the June strike, Iraq's oil minister ordered oil industry officials to refuse to recognize or bargain with the oil worker unions. Iraq's oil industry was nationalized in the 1960s, like that of every other country in the Middle East. The Iraqi oil union became, and remains, the industry's most zealous guardian.
(...) The unions have vowed to strike if the law is implemented. At the occupation's end, the government in Baghdad will need control of the oil wealth to rebuild a devastated country. That gives Iraqis a big reason to fight to protect public ownership and control of the oil industry.
Labels:
iraq,
iraqi labor,
labor unions,
oil,
oil privatization
what is holding up the delivery of the long-awaited iraqi oil law?:
External influences were for the most part, behind the approval of a draft of the oil law, which will be the first and major step in the privatization of Iraqi oil wealth and will ensure that the oil will be produced and marketed by the IOCs with enormous profit to them.
(...) Neither the US Republican administration nor the Democrats had any disagreement with this policy and made the approval of the oil law a benchmark for future US strategy in Iraq within the Iraqi Study Group report.
(...) The IMF made the approval of the oil law one of the main conditions for reducing the Iraqi international debts, as declared in December 1, 2005 in the Paris meetings between the IMF and representatives of the Iraqi Government.
(...) More and more MPs are calling for the law to be carefully studied before its approval. The Iraqi parliament has gone into summer recess without discussing the oil law, but up until now the only members who are openly standing against the oil law are the MPs from Sadr's Movement and some individual members from the "Iraqi Accord," the Dawa Party and some independent MPs.
(...) The latest Oil poll, which was carried out in June and July 2007 by KA Research, has shown that the Iraqis oppose plans to open the country's oil fields to foreign investment by a factor of two to one (63% oppose to 31% for).
(...) The Bush Administration and their Ambassador in Baghdad had openly threatened to replace Al-Maliki's government with a new government, headed by their man in Iraq -- the old Baathist, Iyad Allawi. Al-Maliki has openly accused Allawi in several speeches of attempting to overthrow his government with the help of some units of the Iraqi army and security generals including the head of the Iraqi security forces, the old Baathist general Mohammed Al-Shahwani. These generals were appointed to their positions during Allawi's appointed government by the last US official administrator Paul Bremer back in May 2004, and are still taking their orders directly from the US embassy in Baghdad.
(...) The US administration recognized that a US-led military coup d'etat would not result in any laws being recognized as legitimate by the international community if parliament were to be dissolved. They therefore moved to a new policy, which involved direct interference with the political process in Iraq through their more reliable allies to reorganize the political alliance on which the government relied in order to achieve their goals. They finally succeeded in achieving the establishment of such a front, which was called the "The front of the moderates" on August 15, between the two main Kurdish parties (KDP and PUK), two of the Shiite parties (the SCIRI and Al-Dawa party -- the Al-Maliki wing is called the "External organization"), with negotiations still ongoing to persuade the Islamic Party/Accord front -- the main Sunni party -- to join this new alliance.
(...) The claim of the US Administration that the oil and gas law will allow all Iraqis to share the oil revenue is no more than another peace of misinformation, as the "Revenue Sharing Law" is a separate federal revenue law which is still being negotiated between the different Iraqi parties representing all sectors of Iraqi society.
(...) The latest oil poll which was carried out in June and July 2007 by KA Research has shown that the vast majority of Iraqis (91%) did not feel informed enough about the oil law. This included the 33% who said they knew a little information on the law, 30% who said that they were not very informed and 28% that stated that they knew nothing about it.
External influences were for the most part, behind the approval of a draft of the oil law, which will be the first and major step in the privatization of Iraqi oil wealth and will ensure that the oil will be produced and marketed by the IOCs with enormous profit to them.
(...) Neither the US Republican administration nor the Democrats had any disagreement with this policy and made the approval of the oil law a benchmark for future US strategy in Iraq within the Iraqi Study Group report.
(...) The IMF made the approval of the oil law one of the main conditions for reducing the Iraqi international debts, as declared in December 1, 2005 in the Paris meetings between the IMF and representatives of the Iraqi Government.
(...) More and more MPs are calling for the law to be carefully studied before its approval. The Iraqi parliament has gone into summer recess without discussing the oil law, but up until now the only members who are openly standing against the oil law are the MPs from Sadr's Movement and some individual members from the "Iraqi Accord," the Dawa Party and some independent MPs.
(...) The latest Oil poll, which was carried out in June and July 2007 by KA Research, has shown that the Iraqis oppose plans to open the country's oil fields to foreign investment by a factor of two to one (63% oppose to 31% for).
(...) The Bush Administration and their Ambassador in Baghdad had openly threatened to replace Al-Maliki's government with a new government, headed by their man in Iraq -- the old Baathist, Iyad Allawi. Al-Maliki has openly accused Allawi in several speeches of attempting to overthrow his government with the help of some units of the Iraqi army and security generals including the head of the Iraqi security forces, the old Baathist general Mohammed Al-Shahwani. These generals were appointed to their positions during Allawi's appointed government by the last US official administrator Paul Bremer back in May 2004, and are still taking their orders directly from the US embassy in Baghdad.
(...) The US administration recognized that a US-led military coup d'etat would not result in any laws being recognized as legitimate by the international community if parliament were to be dissolved. They therefore moved to a new policy, which involved direct interference with the political process in Iraq through their more reliable allies to reorganize the political alliance on which the government relied in order to achieve their goals. They finally succeeded in achieving the establishment of such a front, which was called the "The front of the moderates" on August 15, between the two main Kurdish parties (KDP and PUK), two of the Shiite parties (the SCIRI and Al-Dawa party -- the Al-Maliki wing is called the "External organization"), with negotiations still ongoing to persuade the Islamic Party/Accord front -- the main Sunni party -- to join this new alliance.
(...) The claim of the US Administration that the oil and gas law will allow all Iraqis to share the oil revenue is no more than another peace of misinformation, as the "Revenue Sharing Law" is a separate federal revenue law which is still being negotiated between the different Iraqi parties representing all sectors of Iraqi society.
(...) The latest oil poll which was carried out in June and July 2007 by KA Research has shown that the vast majority of Iraqis (91%) did not feel informed enough about the oil law. This included the 33% who said they knew a little information on the law, 30% who said that they were not very informed and 28% that stated that they knew nothing about it.
Labels:
facts,
iraq,
iraqi politics,
oil,
oil privatization,
US meddling
Friday, August 17, 2007
jockeying for power:
The US may have succeeded in toppling the Iraqi regime, but Iran succeeded in placing its allies in positions of power in Baghdad in the post-invasion phase. Iran won its influence in Baghdad not only through its political, sectarian, economic, military and intelligence presence in Iraq, but also through its skill at capitalising on the momentous bungling of the neo-conservative administration in Washington. In 15 years it reversed the outcome of the Iraq-Iran war (1980-1988). From near military defeat it has now scored almost total political victory. It is perhaps no coincidence, therefore, that Al-Maliki's visit was timed to coincide with the anniversary of the Iraq-Iran war.
(...) All three parties appear to be operating on a tacitly agreed-upon premise: a compromise solution will only work if each party does what it takes to ensure that the other parties' worst nightmares do not come true. Riyadh's nightmare is that Iran will succeed in securing a large base of operations in the area of southern Iraq adjacent to the Saudi Arabian borders, within a stone's throw of Saudi oil fields. Tehran fears the emergence of a central government in Baghdad which owes its primary allegiance to Washington and which could eventually build up a strong enough army to threaten Iran again in the future. Washington is cringing at the spectre of a forced withdrawal without face-saving agreements and, therefore, having to sustain the internal and external fallout from an unequivocal defeat while Tehran is left to crow over its political victory in Iraq.
The US may have succeeded in toppling the Iraqi regime, but Iran succeeded in placing its allies in positions of power in Baghdad in the post-invasion phase. Iran won its influence in Baghdad not only through its political, sectarian, economic, military and intelligence presence in Iraq, but also through its skill at capitalising on the momentous bungling of the neo-conservative administration in Washington. In 15 years it reversed the outcome of the Iraq-Iran war (1980-1988). From near military defeat it has now scored almost total political victory. It is perhaps no coincidence, therefore, that Al-Maliki's visit was timed to coincide with the anniversary of the Iraq-Iran war.
(...) All three parties appear to be operating on a tacitly agreed-upon premise: a compromise solution will only work if each party does what it takes to ensure that the other parties' worst nightmares do not come true. Riyadh's nightmare is that Iran will succeed in securing a large base of operations in the area of southern Iraq adjacent to the Saudi Arabian borders, within a stone's throw of Saudi oil fields. Tehran fears the emergence of a central government in Baghdad which owes its primary allegiance to Washington and which could eventually build up a strong enough army to threaten Iran again in the future. Washington is cringing at the spectre of a forced withdrawal without face-saving agreements and, therefore, having to sustain the internal and external fallout from an unequivocal defeat while Tehran is left to crow over its political victory in Iraq.
Labels:
iran,
iraq,
iraqi politics,
oil,
saudi arabia,
shias,
sunnis,
US,
US meddling
Tuesday, August 14, 2007
destination darfur:
Eighty per cent of the oil reserves discovered between 2001 and 2004 come from West Africa, where the U.S. currently procures only 12 per cent of its total supply. West Africa is a crucial site for U.S. interests, so much so that the U.S. is willing to be openly hypocritical about its promotion of democracy and human rights when it comes to the region.
(...) In April 2006, U.S. Secretary of State Condoleezza Rice warmly welcomed her “special friend”, Equatorial Guinea’s man of all seasons and many decades, Teodoro Obiang. Her own department annually chastises Obiang’s regime for corruption, human rights violations and electoral fraud. Despite being home to some of the poorest people in Africa, Equatorial Guinea is the third largest oil producer in the continent, whose oil the U.S. government hopes will flow across the Atlantic to power the U.S. The U.S. has been loath to put pressure on Nigeria for the very same reasons.
(...) Resource wars in the Congo (over diamonds and coltan) and in West Africa (over oil) have set the continent on fire. The U.S. has thus far engaged with these conflicts through Africa’s national armies, who have increasingly become the praetorian guards of large corporations. None of this can be justified directly as protection of the extraction of resources, so it has increasingly been couched in the language of the War on Terror.
(...) The Heritage Foundation lobbied for the creation of AFRICOM for several years, and arguably its work moved Donald Rumsfeld to consider an African Command. In a 2003 study entitled “U.S. Military Assistance for Africa: A Better Solution”, the Heritage Foundation argued: “Creating an African Command would go a long way towards turning the Bush Administration’s well-aimed strategic priorities for Africa into a reality.” Rather than engage Africa diplomatically, it is better to be diplomatic through the barrel of a gun. “America must not be afraid to employ its forces decisively when vital national interests are threatened,” the study said. Nevertheless, the U.S. will not need always to send its own soldiers. “A sub-unified command for Africa would give the U.S. military an instrument with which to engage effectively in the continent and reduce the potential that America might have to intervene directly.” AFRICOM would analyze intelligence, work “closely with civil-military leaders”, coordinate training and conduct joint exercises. In other words, the U.S. would make the friendly African military forces “inter-operatable” not only with U.S. hardware but also with U.S. interests. When AFRICOM became a reality, Heritage’s Brett Schaefer welcomed the “long overdue” move.
(...) In January, the Chinese Foreign Ministry released a White Paper that pointed out that unlike U.S. and European investment, Chinese finance for Africa would be driven by equity and sustainable development. Technology transfer, the entry of African goods into the Chinese market without barriers, and the entry of Chinese finance for development projects are the main elements of the Chinese strategy (also the main features of the Forum on China-Africa Cooperation and the Addis Ababa Action Plan of 2004-06). With the U.S. and European aid at a low point and with resistance from the U.S. and Europe to compromise on the debt burden of African states, the Chinese proposal was welcomed in many parts of Africa.
(...) For people in the Heritage Foundation and in the White House, AFRICOM is as much a response to China as it is to the increased anti-terrorist efforts in the continent.
(...) China is not in Africa for altruistic reasons. A quarter of China’s crude oil imports already come from Africa. African governments are well aware of the competition between the US and China, and they have used that standoff to their partial advantage (when the U.S. would not act fast enough to get Nigeria’s armed forces 200 patrol boats and funds, the Nigerian government turned to China).
(...) China blocked votes in the United Nations Security Council on the ongoing violence in Darfur, although global pressure has now forced Beijing to appoint a special envoy to Darfur and put some modest pressure on Khartoum. The close relationship between the US and the leaders of Equatorial Guinea or Nigeria is repellent but not half as dubious as that between the Chinese and Sudanese governments. The U.S. government has, therefore, a potent weapon to wield against Beijing’s claim to be in favor of African development.
(...) Since 1984-85, the western Sudanese province of Darfur has been in a prolonged crisis. The drought of those years made it hard for pastoralists to find grazing ground for their camel herds. Battles over land went on for two decades before an embattled and split Islamist government in Khartoum armed the most impoverished of the tribes (who had begun to regain their self-respect through a virulently supremacist ideology promoted by a group called Tajamu al Arabi, or the Arab Gathering).
(...) These tribes began an onslaught against their settled neighbors, with Khartoum’s support. In a few years over a million people were driven out of their homes to neighboring Chad (the U.N. estimates that around 70,000 have been killed). (These numbers, incidentally, are dwarfed by the death toll and the population displacement forced by the U.S. occupation of Iraq.) The U.N. called the Sudan situation a “crime against humanity”, while the U.S., uncharacteristically, labeled it genocide. For a while the African Union was able to stabilize the situation, although it did not succeed in crafting a political solution to the problem. The African Union, created in 1999, has neither the financial ability to pay its troops nor the logistical capacity to do the job. The European Union, which paid the troops’ salaries, began to withhold funds on grounds of accountability, and this gradually killed off the peacekeeping operations.
(...) Professor Mahmood Mamdani of Columbia University (one of the world’s leading experts on contemporary Africa), says of this: “There is a concerted attempt being made to shift the political control of any intervention force inside Darfur from inside Africa to outside Africa”. In other words, the U.S. and Europe are eager to control the dynamics of what happens in Africa and not allow an indigenous, inter-state agency to gain either the experience this would provide or the respect it would gain if it succeeds. The African Union has been undermined so that only the U.S. can appear as the savior of the beleaguered people of Darfur, and elsewhere.
(...) Meanwhile, it suits the U.S. that the campaigns to save the people of Darfur concentrate on the role of China and on what is often framed as an “Arab” assault on “Africans.” The Save Darfur Coalition in the U.S., for instance, has a report on the “Deadly Partnership” between Sudan and China but says nothing of the role of the U.S. in undermining the African Union’s attempts. The Coalition is more sophisticated than can fit into the Arab-African stereotypes, but its members include groups that are less careful (the Vishwa Hindu Parishad of America, for instance, is an organizational member; it has not yet tried to distance itself from its parent organization's role in the Gujarat pogroms).
(...) The Save Darfur Coalition, which is the largest U.S. umbrella organization, was formed in 2004 through the work of the United States Holocaust Memorial Museum and the American Jewish World Service. People who have been motivated by the efforts of the group are aware of what is happening in Darfur. This is a worthwhile goal, particularly if it is able to bring a ceasefire and an eventual peace settlement in Darfur. But, the movement seems to have no viable strategy to do this beyond putting pressure on China and pleading with the U.S. government to take “tough” stands against Khartoum. The complexity on the ground is irrelevant.
(...) The heads of the Save Darfur Coalition and the Genocide Intervention Network (set up by the Center for American Progress) are all liberal Democrats who played some kind of a role in the Bill Clinton administration. The Darfur campaign enables them to distance themselves from the excesses of the Bush regime and yet preserve an essential element of the Clinton foreign policy arsenal, “humanitarian intervention” (as in the Kosovo war of 1999). For that reason, these groups have begun to offer the slogan, “Out of Iraq and Into Darfur”. At a forum in New York City on July 15, a young woman asked why the U.S. could not use its superior firepower to defeat the Janjaweed in Sudan. At the same event, the documentary film The Devil Came on Horseback shows the former U.S. Marine Brian Steidle photograph a band of Janjaweed militia leave a village and wish he could exchange his telephoto lens for a gun-scope to “end it now”. Private mercenary armies such as the International Peace Operations Association and DynCorp International clamor to cross the Chad border and conduct operations against the Janjaweed.
(...) That the first head of AFRICOM is the former commander of the battalion that led Operation Restore Hope in Somalia in 1993 is an ominous sign. Would a cruise missile strike on Khartoum (a replay of 1998) and an invasion of Darfur create a solution to the current crisis, or would it only create an Iraq in Africa?
Eighty per cent of the oil reserves discovered between 2001 and 2004 come from West Africa, where the U.S. currently procures only 12 per cent of its total supply. West Africa is a crucial site for U.S. interests, so much so that the U.S. is willing to be openly hypocritical about its promotion of democracy and human rights when it comes to the region.
(...) In April 2006, U.S. Secretary of State Condoleezza Rice warmly welcomed her “special friend”, Equatorial Guinea’s man of all seasons and many decades, Teodoro Obiang. Her own department annually chastises Obiang’s regime for corruption, human rights violations and electoral fraud. Despite being home to some of the poorest people in Africa, Equatorial Guinea is the third largest oil producer in the continent, whose oil the U.S. government hopes will flow across the Atlantic to power the U.S. The U.S. has been loath to put pressure on Nigeria for the very same reasons.
(...) Resource wars in the Congo (over diamonds and coltan) and in West Africa (over oil) have set the continent on fire. The U.S. has thus far engaged with these conflicts through Africa’s national armies, who have increasingly become the praetorian guards of large corporations. None of this can be justified directly as protection of the extraction of resources, so it has increasingly been couched in the language of the War on Terror.
(...) The Heritage Foundation lobbied for the creation of AFRICOM for several years, and arguably its work moved Donald Rumsfeld to consider an African Command. In a 2003 study entitled “U.S. Military Assistance for Africa: A Better Solution”, the Heritage Foundation argued: “Creating an African Command would go a long way towards turning the Bush Administration’s well-aimed strategic priorities for Africa into a reality.” Rather than engage Africa diplomatically, it is better to be diplomatic through the barrel of a gun. “America must not be afraid to employ its forces decisively when vital national interests are threatened,” the study said. Nevertheless, the U.S. will not need always to send its own soldiers. “A sub-unified command for Africa would give the U.S. military an instrument with which to engage effectively in the continent and reduce the potential that America might have to intervene directly.” AFRICOM would analyze intelligence, work “closely with civil-military leaders”, coordinate training and conduct joint exercises. In other words, the U.S. would make the friendly African military forces “inter-operatable” not only with U.S. hardware but also with U.S. interests. When AFRICOM became a reality, Heritage’s Brett Schaefer welcomed the “long overdue” move.
(...) In January, the Chinese Foreign Ministry released a White Paper that pointed out that unlike U.S. and European investment, Chinese finance for Africa would be driven by equity and sustainable development. Technology transfer, the entry of African goods into the Chinese market without barriers, and the entry of Chinese finance for development projects are the main elements of the Chinese strategy (also the main features of the Forum on China-Africa Cooperation and the Addis Ababa Action Plan of 2004-06). With the U.S. and European aid at a low point and with resistance from the U.S. and Europe to compromise on the debt burden of African states, the Chinese proposal was welcomed in many parts of Africa.
(...) For people in the Heritage Foundation and in the White House, AFRICOM is as much a response to China as it is to the increased anti-terrorist efforts in the continent.
(...) China is not in Africa for altruistic reasons. A quarter of China’s crude oil imports already come from Africa. African governments are well aware of the competition between the US and China, and they have used that standoff to their partial advantage (when the U.S. would not act fast enough to get Nigeria’s armed forces 200 patrol boats and funds, the Nigerian government turned to China).
(...) China blocked votes in the United Nations Security Council on the ongoing violence in Darfur, although global pressure has now forced Beijing to appoint a special envoy to Darfur and put some modest pressure on Khartoum. The close relationship between the US and the leaders of Equatorial Guinea or Nigeria is repellent but not half as dubious as that between the Chinese and Sudanese governments. The U.S. government has, therefore, a potent weapon to wield against Beijing’s claim to be in favor of African development.
(...) Since 1984-85, the western Sudanese province of Darfur has been in a prolonged crisis. The drought of those years made it hard for pastoralists to find grazing ground for their camel herds. Battles over land went on for two decades before an embattled and split Islamist government in Khartoum armed the most impoverished of the tribes (who had begun to regain their self-respect through a virulently supremacist ideology promoted by a group called Tajamu al Arabi, or the Arab Gathering).
(...) These tribes began an onslaught against their settled neighbors, with Khartoum’s support. In a few years over a million people were driven out of their homes to neighboring Chad (the U.N. estimates that around 70,000 have been killed). (These numbers, incidentally, are dwarfed by the death toll and the population displacement forced by the U.S. occupation of Iraq.) The U.N. called the Sudan situation a “crime against humanity”, while the U.S., uncharacteristically, labeled it genocide. For a while the African Union was able to stabilize the situation, although it did not succeed in crafting a political solution to the problem. The African Union, created in 1999, has neither the financial ability to pay its troops nor the logistical capacity to do the job. The European Union, which paid the troops’ salaries, began to withhold funds on grounds of accountability, and this gradually killed off the peacekeeping operations.
(...) Professor Mahmood Mamdani of Columbia University (one of the world’s leading experts on contemporary Africa), says of this: “There is a concerted attempt being made to shift the political control of any intervention force inside Darfur from inside Africa to outside Africa”. In other words, the U.S. and Europe are eager to control the dynamics of what happens in Africa and not allow an indigenous, inter-state agency to gain either the experience this would provide or the respect it would gain if it succeeds. The African Union has been undermined so that only the U.S. can appear as the savior of the beleaguered people of Darfur, and elsewhere.
(...) Meanwhile, it suits the U.S. that the campaigns to save the people of Darfur concentrate on the role of China and on what is often framed as an “Arab” assault on “Africans.” The Save Darfur Coalition in the U.S., for instance, has a report on the “Deadly Partnership” between Sudan and China but says nothing of the role of the U.S. in undermining the African Union’s attempts. The Coalition is more sophisticated than can fit into the Arab-African stereotypes, but its members include groups that are less careful (the Vishwa Hindu Parishad of America, for instance, is an organizational member; it has not yet tried to distance itself from its parent organization's role in the Gujarat pogroms).
(...) The Save Darfur Coalition, which is the largest U.S. umbrella organization, was formed in 2004 through the work of the United States Holocaust Memorial Museum and the American Jewish World Service. People who have been motivated by the efforts of the group are aware of what is happening in Darfur. This is a worthwhile goal, particularly if it is able to bring a ceasefire and an eventual peace settlement in Darfur. But, the movement seems to have no viable strategy to do this beyond putting pressure on China and pleading with the U.S. government to take “tough” stands against Khartoum. The complexity on the ground is irrelevant.
(...) The heads of the Save Darfur Coalition and the Genocide Intervention Network (set up by the Center for American Progress) are all liberal Democrats who played some kind of a role in the Bill Clinton administration. The Darfur campaign enables them to distance themselves from the excesses of the Bush regime and yet preserve an essential element of the Clinton foreign policy arsenal, “humanitarian intervention” (as in the Kosovo war of 1999). For that reason, these groups have begun to offer the slogan, “Out of Iraq and Into Darfur”. At a forum in New York City on July 15, a young woman asked why the U.S. could not use its superior firepower to defeat the Janjaweed in Sudan. At the same event, the documentary film The Devil Came on Horseback shows the former U.S. Marine Brian Steidle photograph a band of Janjaweed militia leave a village and wish he could exchange his telephoto lens for a gun-scope to “end it now”. Private mercenary armies such as the International Peace Operations Association and DynCorp International clamor to cross the Chad border and conduct operations against the Janjaweed.
(...) That the first head of AFRICOM is the former commander of the battalion that led Operation Restore Hope in Somalia in 1993 is an ominous sign. Would a cruise missile strike on Khartoum (a replay of 1998) and an invasion of Darfur create a solution to the current crisis, or would it only create an Iraq in Africa?
Labels:
africom,
china,
darfur,
equatorial guinea,
humanitarian interventions,
imperialism,
niger delta,
nigeria,
oil,
US meddling
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